The First Section of the Brazilian Supreme Court of Justice (STJ)\u00b9 will rule on the possibility of deducting Interest on Net Equity (JCP)\u00b2 from the calculation basis of Corporate Income Tax (IRPJ)\u00b3 and Social Contribution on Net Profit (CSLL)\u2074 when such interest was calculated in fiscal years prior to the payment authorization. This decision will be made under the repeated appeals procedure and will be binding on lower courts. The ruling will be issued in Special Appeals No. 2.161.414\/PR, 2.162.629\/PR, 2.163.735\/RS, and 2.162.248\/RS, Theme 1319, under Justice Paulo S\u00e9rgio Domingues’s oversight.<\/p>\n
Context of the Controversy<\/strong><\/p>\n Brazilian Law No. 9.249\/1995, Article 9, allows companies to deduct from their net profit amounts paid or credited as Interest on Net Equity, thus reducing the calculation basis for IRPJ and CSLL. However, the Brazilian Federal Revenue Service and the Administrative Council of Tax Appeals (CARF)\u2075 maintain that this deduction is only valid if made in the same fiscal year in which the profit was determined, as established by Normative Instruction RFB No. 1.700\/2017.<\/p>\n Conversely, taxpayers argue that the legislation does not impose such temporal limitation, allowing deduction even when JCP payment or credit occurs in a fiscal year subsequent to profit determination. It should be noted that STJ panels’ jurisprudence has been favorable to taxpayers, recognizing the possibility of deducting JCP paid or credited in subsequent fiscal years.<\/p>\n Decision Impacts<\/strong><\/p>\n While the controversy has no scheduled judgment date, the position to be established by the STJ will have binding effects on other courts and administrative bodies, potentially standardizing the understanding of this matter and directly impacting companies that make JCP payments related to profits from previous fiscal years. The decision may also influence the positioning of CARF and the Federal Revenue Service, which currently maintain a restrictive understanding regarding retroactive JCP deductions.<\/p>\n Therefore, considering the possibility of effects modulation\u2076 that may be applied by the STJ, it is important to evaluate the convenience of filing individual lawsuits to discuss this matter, preferably before the controversy’s judgment, although it is not possible to predict the terms of such modulation or if it will indeed occur.<\/p>\n \u00b9 STJ (Superior Tribunal de Justi\u00e7a) is Brazil’s highest court for non-constitutional matters<\/p>\n \u00b2 JCP (Juros sobre Capital Pr\u00f3prio) is a Brazilian tax-deductible form of shareholder remuneration<\/p>\n \u00b3 IRPJ (Imposto de Renda da Pessoa Jur\u00eddica) is the Brazilian Corporate Income Tax<\/p>\n \u2074 CSLL (Contribui\u00e7\u00e3o Social sobre o Lucro L\u00edquido) is a social contribution tax on net profit<\/p>\n \u2075 CARF is Brazil’s highest administrative tax court<\/p>\n \u2076 Effects modulation refers to the court’s power to limit the temporal effects of its decisions<\/p>\n","protected":false},"featured_media":12295,"template":"","categories":[82],"class_list":["post-12297","publicacoes","type-publicacoes","status-publish","has-post-thumbnail","hentry","category-notes"],"acf":[],"yoast_head":"\n
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