Due to the cancellation of the request for emphasis made by Minister Min. Luiz Fux on May 23, 2024, General Repercussion Theme No. 118, which deals with the incidence of ISS on the PIS and COFINS calculation basis, may once again be scheduled by the STF plenary for virtual judgment.

The trial of the matter had already begun in the virtual plenary, however, until then, it has 8 votes cast, 4 in favor and 4 against the taxpayers. In 2021, the STF Minister requested a request for the matter to be judged in an in-person session of the Supreme Federal Court, but last week he canceled the request.

This way, the topic can be put on the agenda for virtual judgment at any time. We can then obtain a definitive decision on the matter in a short period of time.

We would like to remind you that taxpayers claim that the calculation basis for PIS and COFINS would be limited to the concept of gross revenue or turnover, which should only represent the sale of goods and provision of services, which does not include ISS, which only passes through as a mere financial entry into the legal entity's account, configuring, in reality, revenue for the Municipal Tax Authority.

We highlight the importance of taxpayers assessing the impacts of a possible favorable result, considering the filing of a lawsuit, due to the possibility of eventual modulation of the effects of the decision by the STF.

Our team is available to provide any clarification on the matter and we are attentive to any news regarding the trial to communicate any changes regarding the topic.