The 10% That Makes a Difference: How Tips Can Impact Your Business Taxes

Tips: Clear Rights for Businesses Under the Presumed Profit Regime

According to the Superior Court of Justice (STJ), tips are considered salary in nature and must be fully passed on to employees. Therefore:

• They cannot be taxed under IRPJ, CSLL, PIS, or COFINS for businesses in the Presumed Profit regime.

• The business acts as a mere collector of these funds, and they do not constitute its own revenue.

This understanding was solidified by the SEI Opinion No. 129/2024 from the Ministry of Finance, which guides the exclusion of tips from these tax calculations. (gov.br)

What About Businesses Under Simples Nacional?

Here’s the key point: if your business operates under the Simples Nacional regime, this matter has not yet been settled in court. This means that to exclude tips from the taxable base, judicial action is required. While it may involve legal effort, it represents an opportunity for substantial savings with expert legal guidance.

Why Take Action Now?

If your business is already in the Presumed Profit regime, follow these steps to avoid tax issues:

1. Document the distribution of tips: Ensure all amounts are properly transferred to employees.

2. Keep detailed records: Demonstrate how the tips are managed in case of audits.

3. Consult a specialist: A lawyer can review your processes and ensure compliance with the law.

For businesses under Simples Nacional, pursuing judicial solutions may open the door to significant tax benefits, following the precedent set for the Presumed Profit regime.

The well-known 10% doesn’t have to burden business owners when handled correctly. If you’re under the Presumed Profit regime, take advantage of the benefits already guaranteed. If under Simples Nacional, act now: contact a lawyer and explore the possibilities of reducing taxes with a well-structured legal action.