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

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

Financial, insurance, real estate sectors

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

The recent tax developments include:

  • Joint Ordinance PFGN/RFB nº 3/23 (31 March 2023)—Extended the deadline for joining the tax litigation reduction program (programa de redução de litigiosidade fiscal, or PRLF), also known as the “zero litigation” program
  • Cosit Consultation Solution nº 61/23 (14 March 2023)—Prohibited consortium administrators from appropriating PIS (programa de integração social) and COFINS (contribuição para o financiamento da seguridade social) credits on commission expenses paid to legal entities that provide services for the sale of consortium quotas
  • Recent Administrative Board of Tax Appeals decisions—Held in favor of taxpayers on issues involving the deductibility of profit sharing payments to employees and the requirement to make social security contributions on payments made to statutory directors
  • 1st Panel of the Superior Court of Justice (special appeal nº 1,893,596)—Held that the taxpayer was not required to collect municipal services tax (Imposto sobre Serviços, or ISS) on unconditional discounts on bank fees
  • Federal Supreme Court—Held that a 50% fine on non-approved compensations was unconstitutional
  • Federal Supreme Court—Suspended the effectiveness of decisions that allowed application of reduced rates of PIS and COFINS on financial income earned by legal entities subject to the non-cumulative regime, pending examination of the merits of the issue

Read an April 2023 report (Portuguese) prepared by the KPMG member firm in Brazil



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