By Guilherme Martins and João Pedro Riccioppo Cerqueira Gimenes

Last week, the Superior Court of Justice concluded the judgment of Repetitive Theme No. 1,125, and established the thesis that “ICMS-ST does not form part of the calculation basis for PIS and COFINS contributions owed by the taxpayer replaced under the progressive tax substitution regime”. 

Theme No. 1,125 of the Repetitive Appeals refers to the exclusion of ICMS due in the tax substitution system (ICMS-ST) replaced by the calculation basis of the PIS and of the COFINS. The thesis arises from the judgment of Theme No. 69 of General Repercussion by the Federal Supreme Court, which recognized that ICMS does not form the basis for calculating PIS and COFINS, but without specifying whether ICMS-ST could be excluded.

The judgment of Topic 1,125 was awaited by many companies, as it is a relevant tax thesis. Now, after the publication of the judgment and notification of the parties, we must await the deadline for filing a statement of clarification or possibly for filing an extraordinary appeal. 

Our team will closely monitor the development of the topic and is available to provide any clarifications.