Ablem: tax on medical equipment rentals should increase from 8% to 21% with reform

A study conducted by Tendências Consultoria in partnership with the Brazilian Association of Medical Equipment Rental Companies (Ablem) predicts that the tax reform should lead to an increase of 11.37 percentage points in taxes on the rental of medical equipment. The tax burden should increase from 8.34% to 20.95%, says Ablem.

This is because leased equipment will not have a reduced tax rate. Complementary Bill No. 68, which regulated the reform, provides for a 60% reduction in the tax rate only for the sale of medical devices. In some cases, this percentage is even reduced to zero.

“The estimated tax burden for the sale of medical equipment would go from approximately 22.25% to 9.58%, a reduction of 12.67 percentage points, according to calculations by Tendências Consultoria. On the other hand, for the leasing of medical equipment, the new estimated tax burden would be 11.37 percentage points higher than the original burden, jumping from 8.34% to 20.95%,” the association states.

The calculation already takes into account non-cumulativity and is based on the estimate for the reference rate of Value Added Tax (VAT), of 26.50%, as well as the 60% reduction in the case of the sale of equipment (rate of 10.60%).

According to Ablem, for small municipalities and smaller private hospitals, the cost of purchasing medical devices can be prohibitive. In the SUS, for example, “the possibility of leasing with reduced taxes could even accelerate the renewal and increase in the number of medical equipment,” argues the association.