On December 19, 2023, the Brazilian IRS published COSIT Answer to Advance Tax Ruling Request No. 308/2023 to clarify the Federal Tax Administration’s position regarding the levy of IRPJ, CSLL, PIS and COFINS on credits accrued from a court decision that recognized unduly paid tax.
The Brazilian IRS reaffirmed that the taxpayer:
- Must pay IRPJ and CSLL on the taxes to be recovered
- Does not need to pay PIS and COFINS on the taxes to be recovered (however, the interest on the unduly paid taxes is subject to PIS and COFINS)
