Brazil: Report of tax developments for financial, insurance, real estate sectors

Recent tax developments that may affect companies in the financial, insurance, and real estate sectors

Financial, insurance, real estate sectors

Article Posted date 10 January 2023

The KPMG member firm in Brazil prepared a report that describes recent tax developments that may affect companies in the financial, insurance, and real estate sectors.

The recent tax developments include:

  • Provisional Measure No. 1,152—Alters the transfer pricing rules in Brazil (read TaxNewsFlash)
  • Provisional Measure 1,148/22—Extends until 31 December 2024 the use of the presumed credit of the income tax of legal persons (imposto de renda de pessoa jurídica (IRPJ)) and the consolidation regime for Brazilian multinationals
  • RFB Normative Instruction No. 2.121/22—Regulates the assessment, inspection and collection of contributions to the PIS (programa de integração social) / Pasep and COFINS (contribuição para o financiamento da seguridade social) 
  • Decree No. 11,322/22—Establishes the reduction of PIS and COFINS rates on financial receipts, including those resulting from operations carried out for hedge purposes, granted by legal persons subject to the non-cumulative regime
  • Consultation Solution COSIT nº 45/22—Favors the taking of credit from PIS/COFINS for companies that have expenses due to the imposition of specific legislation
  • Federal Regional Court of the 3rd Region (TRF3)—Recognized the law of two insurers to withdraw from the calculation basis of PIS and COFINS amounts received by the insured and passed on to the insurance brokers as commission
  • Law 14,476 (conversão da Medida Provisória nº 1,128/22)—Provides for a new tax treatment applicable to losses incurred in the receipt of credits from financial institutions and other institutions authorized to operate by the Central Bank of Brazil
  • Superior Court of Justice—Allowed the deduction of capital payments to shareholders and partners, thus reducing the base calculation of income tax and social contribution on net profit
  • Agreement nº 9101-006.290—Allows the amortization of the internal tax generated before Law 12,973/14


Read a January 2023 report (Portuguese) prepared by the KPMG member firm in Brazil

 

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