Não-incidência do ISS sobre Atividades de Franquia (Franchising)

Abstract

This paper is aimed at analyzing the possibility of Service Occupation Tax (ISS) requirement in respect to the installments resulting from the franchise agreement and its ancillary activities, based on the previous legislation (Decree-Law nº 406/68 and modifications) and on the new discipline of the municipal tax, introduced by the Complementary Law nº 116/03. Therefore, we start from the rule that grants tax jurisdiction to the municipalities, identifying the constitutional concept of taxable service and the corresponding tax calculation basis. On the strength of these premises and considering the intrinsic peculiarities of the franchise agreement, we discuss the unconstitutionality of the Service Occupation Tax (ISS) incidence over the values received as remuneration for these agreements.