Exclusion of the Presumed IPI Credit from the PIS/COFINS base
In yet another important judgment on tax issues that took place in December 2023, the Plenary of the Federal Supreme Court (“STF”), when analyzing General Repercussion Theme No. 504, understood that the Presumed IPI Credit, arising from the acquisition of inputs for the manufacture of products intended for export, must be excluded from the base […]
STF allows termination of small value tax foreclosure
Last Wednesday, the Plenary of the Federal Supreme Court (“STF”), when judging the General Repercussion Theme No. 1,184, decided that low-value Tax Executions may be extinguished, if so desired by the Federative Entity (Union, States or Municipalities) that understands the lack of interest in acting or continuing with such small-value Executions […]
STJ excludes ICMS-ST from the PIS and COFINS calculation bases
In November, the Supreme Federal Court (“STF”) heard ADIs 7,066, 7,070 and 7,078, discussing the correct time at which the States could have charged ICMS-Difal. The issue was known to taxpayers, many of whom appealed to the Judiciary to avoid charging the tax […]
STJ excludes ICMS-ST from the PIS and COFINS bases
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 the basis for calculating PIS and COFINS contributions owed by the substituted taxpayer in the progressive tax substitution regime”. Theme No. 1,125 of the Repetitive Appeals refers to […]
São Paulo approves Tax Transaction for debts registered in active debt
Law No. 17,843/2023 was published, creating the “Acordo Paulista” program in the State of São Paulo, capable of promoting better conditions for carrying out a settlement transaction for disputes related to the collection of tax or non-tax debts from the Public Treasury, registered as active debt in the State of São Paulo. The new […]
Bill approved on taxation of investments abroad
At the end of November, the Federal Senate approved Bill (“PL”) No. 4,173/23, which promoted and established relevant changes in the rules for taxing income earned by individuals in financial investments and controlled entities abroad, as well as in relation to investments held via trusts abroad, and in the taxation of funds […]
STJ rules in favor of the taxpayer on the issue of “double PAT”
In October, the 2nd Panel of the Superior Court of Justice (“STJ”), unanimously, pointed out that the limitations brought by Decree No. 10.854/2021 to the deduction of amounts allocated to the Workers’ Food Program (“PAT”) from the calculation of IRPJ, a relevant and assertive precedent established for the benefit of Brazilian taxpayers, are illegal. The reasons that led to […]
Tax Reform was approved in the Federal Senate
Last week, the Federal Senate approved, in 2 Rounds, the Consumption Tax Reform – Proposed Amendment to the Constitution No. 45 (PEC No. 45), which, despite the various exceptions and regimes favored in the text, maintains its elementary characteristics, when it comes to the implementation of the Value Added Tax (“VAT”) in Brazil. The […]
STJ: The use of negative IRPJ and CSLL balances in compensation
The 1st Panel of the Superior Court of Justice (STJ), unanimously decided that the receipt of refund requests and offset statements (PER/DCOMP) related to negative IRPJ or CSLL balances is subject to the transmission of the Fiscal Accounting Records (ECF). Initially, this requirement was provided for by the Normative Instruction of the Federal Revenue of […]
The IRS and the new Transfer Pricing Rules
In order to regulate the provisions of Law No. 14,596/2023, published in April of this year, the Federal Revenue Service (RFB) published Normative Instruction No. 2,161/2023, which provides for the Transfer Pricing rules applicable to transactions between parties domiciled in Brazil and their related parties abroad. Both regulations come from initiatives by the Government […]
