Brazil: Changes in accounting and tax treatment of credit losses
Changes include the concept of “expected credit losses”
Changes include the concept of “expected credit losses”
CMN Resolution No. 4966/21 (together with BCB Resolution No. 309/23) and Law No. 14476 introduce changes in the accounting and tax treatment of losses incurred in receiving credits from financial institutions and other institutions authorized to operate by the Central Bank of Brazil.
The changes—part of the process of harmonization with international accounting practices—include the concept of “expected credit losses.”
In addition, BCB Resolution No. 219/22 introduces provisions applicable to consortium administrators and payment institutions.
Read an August 2023 report (Portuguese) prepared by the KPMG member firm in Brazil
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