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

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

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:

  • Federal Supreme Court—Held that the court’s decision invalidating the social contribution on profits (contribuiçao social sobre o lucro (CSLL)) applied only prospectively, and the tax authority could impose the tax prior to the court’s decision
  • Divergence Solution nº 1/22—Provides rules for deducting taxes, fines and interest on arrears in determining taxable income and CSLL base
  • Provisional Measure 1,160/23—Reestablished the casting vote in the Administrative Council for Tax Appeals (Conselho Administrativo de Recursos Fiscais (CARF))
  • Joint Ordinance nº 1/23—Instituted an exceptional transaction through the program on tax litigation reduction (PRLF), also known as the “zero litigation” program
  • Court of Justice of the State of Santa Catarina—Held that urban property and land tax (imposto sobre a propriedade predial e territorial urbana (IPTU)) is only applicable after a certificate of occupancy is granted
  • ICMS Agreement 50/22—Provides that banks will be required to deliver a declaration of means of payment (DIMP), relating to the period from January to March 2022, As of 30 April 2023
  • CGOA Resolution nº 8/23—Extends the deadline until 16 April 2023 for taxpayers to develop the unified standard electronic system and make it available for approval by the Committee Accessory Obligations Manager (CGOA)

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


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