Brazil: ICMS exclusion on Pis/Cofins calculation base

published on 5 April 2022 | reading time approx. 1 minute

We would like to inform you about the advantages of the corrections of tax declarations, in order to guarantee right to the credits arising from overpaid taxes to the "Federal Revenue".

In May 2021, the Supreme Court determined that ICMS (value added tax on sales and services) should not be part of the Pis (Profit Participation Program) and Cofins (Tax For Social Security Financing) calculation basis. At the time, it was defined that ICMS would be considered for exclusion, if it is presented in the invoice and that the effects are valid from 15 March 2017.

Only after the manifestation of PGFN (Attorney General Finance Secretariat) and through the SEI (Eletronic Information System) n. 7698/202 the Federal Revenue released the amendment for EFD-Contribuições (Digital Tax Bookkeeping Contributions) Practical Guide, enabling companies to start the rectification processes.

Our interdisciplinary team of experts can help your company release overpaid credits based on the procedures below:

Rectify EFD-Contributions statement: month by month and item by item
Rectify DCTF (Declaration of Federal Tax Debits and Credits) statement: monthly
Application for credits through PER/DCOMP (Electronic Request for Refund, Reimbursement and Declaration of Compensation) statement: refund or Compensation