Carf Rules That Subsidized Loans Granted by BNDES Qualify as Investment Grants
In a recent decision, the Administrative Council of Tax Appeals (Carf) ruled that loans granted by the Brazilian Development Bank (BNDES) may be classified as investment grants and, as such, excluded from the Corporate Income Tax (IRPJ) taxable base calculated under the actual profit regime. The case involved a taxpayer that used BNDES financing for […]
Mandatory Monthly Reporting via the Tax Inclusion Module (MIT) Starting January 2025
The Brazilian Federal Revenue Service (RFB) has issued Tax Directive No. 2,237/2024, replacing the previous directive (No. 2,005/2021), introducing significant changes to the submission process of the Declaration of Federal Tax Debits and Credits (DCTFWeb). As part of modernization and simplification efforts, the Tax Inclusion Module (MIT) has been introduced as an integrated service within […]
International Asset Recovery: Challenges and Solutions
International asset recovery within the civil sphere is crucial for companies, financial institutions, and creditors across various sectors struggling with the collection of debts originated in Brazil. The expansion of international trade and capital flows across jurisdictions escalates the risk of defaults and complicates the enforcement of creditor rights, particularly against sophisticated debtors who utilize […]
TST Ratifies New Themes for Consistent Application in Competitive Appeals Procedures
The Full Court of the Superior Labor Court (TST) has ratified four new themes for consideration under the repetitive appeals process, aiming to establish a legal thesis that will apply uniformly across all analogous cases. This approach was taken after identifying multiple appeals with identical themes, from which a selection was made to represent the […]
Defining the Limits of “Right to Rely” for Company Administrators
In 2019, Brazil was the site of one of its most significant environmental disasters—the collapse of a mining waste dam operated by Vale S.A., one of the country’s largest miners. This catastrophe released 12 million cubic meters of mud and waste into the municipality of Brumadinho in Minas Gerais, claiming 270 lives and erasing R$ […]
INTERIM MEASURE 1,262/2024 – Introduction of Additional CSLL and Implementation of GloBE Rules
On 3 October 2024, Interim Measure 1,262 was published, significantly altering the Brazilian tax system by instituting an Additional to the Social Contribution on Net Income (CSLL) to ensure a minimum effective tax rate of 15%. This adjustment aligns with the Global Anti-Base Erosion (GloBE) Rules devised by the Inclusive Framework on BEPS, coordinated by […]
Brazil Implements Regulatory Framework for Carbon Trading
On December 12, 2024, President Luiz Inácio Lula da Silva enacted Law 15.042/2024, creating the Brazilian Greenhouse Gas Emissions Trading System (SBCE). This law formalizes a formal framework for the management of environmental assets, such as Brazilian Emissions Quotas (CBEs) and Certificates of Verified Emission Reduction or Removal (CRVEs), integrating Brazil into global climate change […]
Tax Reform Regulations Enacted by the Presidency
After the National Congress approved Bill 68/2024 on 1 January 2025, the regulatory framework for the tax reform was enacted by the Presidential Office through Complementary Law 214/2025 (LC). This law stipulates the application of three new taxes devised by the Brazilian tax reform to replace the existing ones—PIS, Cofins, IPI¹ , ICMS, and ISS. […]
CARF Endorses Exclusion of Subsidies from IRPJ/CSLL Calculation Base
On 6 January 2025, the Administrative Council of Tax Appeals (CARF) ruled that ICMS (Tax on the Circulation of Goods and Services) tax incentives granted by states could be excluded from the calculation base of the Corporate Income Tax (IRPJ) and the Social Contribution on Net Profit (CSLL). This is contingent on the proper establishment […]
Extension of Fiscal Benefits in São Paulo and Updates to State Legislation
The State of São Paulo welcomed 2025 with key updates to its legislation. Throughout December 2024 and January 2025, decrees 69.207, 69.208, 69.268, 69.269, 69.274, 69.287, 69.288/2024, 69.289, 69.291, 69.292, and 69.293 were enacted, implementing significant changes to state laws. A primary feature of these updates is the extension of various fiscal benefits, which were […]