Income Tax Exemption
Did you know that some Sinqia (SQIA3) shareholders are exempt from Income Tax?
According to Provisional Measure 651/14, converted into Law 13,043/14, individual investors are exempt from income tax on profit from sales of SQIA3 shares on B3 cash market. This exemption is valid for those who bought shares from 10 July 2014 to 05 September 2019, as long as the shares are sold until 31 December 2023.
According to CVM Notice of 11 July 2014, Sinqia S.A. (B3: SQIA3), new name of Senior Solution S.A., is part of the list of companies that meet the requirements established by Law, namely:
I – shares traded in a special segment of the stock exchange, which ensures differentiated corporate governance practices: in our case, Novo Mercado;
II – market value of less than R$ 700.0 million on 10 July 2014: in our case, R$ 94.3 million;
III – annual gross revenue less than R$ 500.0 million in 2013: in our case, R$ 56.7 million; and
IV – primary distribution corresponding to at least 67% of the total in the IPO: in our case, 69.0%.
In addition, in order to clarify the procedures related to the Internal Revenue Service (Receita Federal do Brasil) in order to benefit from this exemption, we recommend that each tax payer consult with accounting professionals of his or her trust.
With the conclusion of the Restrict Offer of Shares (“Offer”) disclosed on 09/05/2019, the tax benefit provided for in Article 16 of Law 13,043/14 (resulting from the conversion of MP 651/14), and object of the material fact disclosed by the Company on 07/11/2014, ceased to exist, since the Company has recently reached a market capitalization of more than R$ 700.0 million. Accordingly, the Shares issued under the Offering will not enjoy such tax benefit, and the individual who disposes of the Shares subscribed to the Offering on a stock exchange is subject to the Income Tax on capital gain, at the rate prevailing at the time of the sale. calculated in accordance with applicable law.
For information about the end of the tax benefit established by Law 13,043/14 as a result of the Offer, see item “4.1. Risk Factors – c. Risks Related to the Company’s Shareholders” of the Reference Form (2019, version 4).