Brazil: New considerations on the exclusion of ICMS on the base of PIS and Cofins

published on 7 July 2021 | reading time approx. 1 minute

On 24 June, a new version 1.35 of the EFD Contributions Practical Guide was published, containing general guidelines on lawsuits and specific guidelines on the exclusion of ICMS from the PIS/Cofins calculation basis.

The new version is in accordance with the understanding already dealt with in SEI Opinion No. 7698/21 of the Attorney General's Office of the National Treasury.

The procedure must be done individually by operation, checking the information recorded in the tax files (i.e. “EFD-Contributions”), where it is worth highlighting the particular features for the income earned before and after 16/03/2017:

Income generated previous to 15/03/2017: Exclusion of ICMS exclusively for legal entities that filed a lawsuit until 03/15/2017;
Income generated post 16/03/2017: Exclusion of ICMS regardless of whether the legal entity has filed a lawsuit or not.

In addition to these and other clarifications, the manual provided methodology for carrying out the adjustments with examples.