Brazil: The RFB has issued IN RFB No. 2184/2024 regulating the thesis transaction regarding the Investment Subsidies Taxation

In brief

On 3 April 2024, the Federal Revenue of Brazil (RFB) issued Normative Instruction No. 2184/2024, which regulates the tax transaction provided in Article 14 of Law 14789/2023. This transaction aims to encourage companies to pay IRPJ and CSLL (corporate income taxes), resulting from the exclusion of investment subsidies made in disagreement with Article 30 of Law No. 12973 of 13 May 2014, provided that they have not been subject to assessment.

The deadline for joining the program is as follows:

  1. From 10 April 2024 to 30 April 2024 for calculation periods up to 31 December 2022
  2. From 10 April 2024 to 31 July 2024 for calculation periods relating to 2023

The transaction for debts registered as active debts of the RFB, provided in Article 13 of Law 14789/23, has not yet been regulated.


Contents

In depth

The main aspects of the program are:

Investment Subsidies Taxation — Transaction — RFB

Target audience Companies that have utilized investment subsidies until 2023.
Accession deadline
  1. From 10 April 2024 to 30 April 2024 for debts calculated up to 31 December 2022.
  2. From 10 April 2024 to 31 July 2024 for debts relating to 2023.
Eligible debts
  1. Debts related to IRPJ and CSLL calculations for the following periods:
    1. Until 31 December 2022 for those that have been declared in the ECFs submitted by 29 December 2023.
    2. From 2023 onwards for those that have been presented in the DCTFs submitted by 29 December 2023.
  2. Tax debts administered by the RFB that were offset (PERDCOMPs submitted up to 29 December 2023) with credits from negative balances or undue or overpayments of IRPJ and CSLL, linked to subsidies.
Benefits

Reductions will be applied according to the number of installments chosen, as follows:

  1. Up to 12 installments: 80% debt reduction
  2. Up to 60 installments: pay at least 5% of the debt without a discount and in up to five installments, and the remaining amount with a 50% reduction
  3. Up to 84 installments: pay at least 5% of the debt without a discount and in up to five installments, and the remaining amount with a 35% reduction
Procedures

The taxpayer has to comply with the following accessory obligations:

  1. For debts calculated until 31 December 2022, rectifying the ECF and the DCTF by 31 May 2024
  2. For debts relating to 2023, rectifying the DCTF by 31 July 2024
Additional requirements Those who join the transaction must follow the new treatment of Investment Subsidies Taxation, including the prohibition on discussing the system in court established in Law No. 14789 of 2023.

 

This newsletter is merely a general review of the subjects covered and does not constitute legal opinion or advice.

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