Brazil’s Federal Revenue Service has extended the deadline for adherence to the incentivized self-regularization program for tax debts resulting from exclusions from real profit made in disagreement with the provisions of article 30 of Law No. 12,973/2014.
Article 30, which has now been repealed, regulated the treatment of investment grants, establishing conditions and requirements for them to be excluded from taxable income for the purposes of calculating Corporate Income Tax (IRPJ) and the Contribution on Net Income (Contribuição sobre o Lucro Líquido).
There was legal controversy over the application of these requirements to ICMS tax benefits, such as a reduction in the calculation base and rates, exemption, immunity, deferral, among others. However, after the STJ ruled on Theme No. 1.182, it was decided that tax benefits related to ICMS should be included in the IRPJ and CSLL calculation basis, unless the requirements of Law No. 12.973/14 and Complementary Law No. 160/2017 are met.
With the enactment of Law No. 14,789/2023, regulated by Normative Instruction No. 2,184/2024, an opportunity was granted to settle IRPJ and CSLL debts arising from undue exclusions from real profit of investment grants with significant discounts on fines and interest, as well as the possibility of installment payments.
Check out more information on the program!
Who can join?
All taxpayers who have made exclusions of investment grants from the IRPJ and CSLL calculation basis, which are in disagreement with article 30 of Law No. 12,973/2014, are eligible to join the program.
Deadlines
The deadlines to be observed are as follows, taking into account the recent extension:
- From April 10 to May 31: for debts assessed up to 12/31/2022; and
- From April 10 to July 31: for debts assessed in 2023.
Adhesion criteria
The application for self-regularization must be made by opening a digital process on e-CAC, indicating the tax debts, the PER/DCOMPs (Electronic Request for Refund, Reimbursement or Reimbursement and Declaration of Compensation) eventually used (even if they have not been cancelled), in addition to the supporting documents described in the list in article 7 of the normative instruction.
In addition, in order to join the program, taxpayers must confess their debts (which is irrevocable and irreversible) by submitting their tax returns:
- ECF and DCTF rectificadoras until 05/31/2024, for debts assessed until 12/31/2022; and
- Amending DCTF by July 31, 2024, for debts assessed in 2023.
Debts covered by self-regularization
Those who choose to adhere to the self-regularization program will be able to settle the debts relating to IRPJ and CSLL calculated as a result of the exclusions of investment grants, as long as they have not been the subject of an entry, i.e. as long as the tax credit has not been effectively constituted.
The debts subject to self-regularization (IRPJ and CSLL) must be confessed and cover the following period:
- Debts relating to assessment periods ending up to 12/31/2022, whose exclusions were unduly made in the original or rectifying ECF (Tax Accounting Bookkeeping), transmitted up to 12/29/2023; and
- Debts relating to the quarterly calculation periods for the year 2023, whose exclusions unduly made are reflected in the debts reported in the DCTFs (Statement of Federal Tax Debts and Credits), original or rectifying, submitted until 29/12/2023.
In addition, taxes administered by the RFB that have been unduly offset against credits from negative IRPJ/CSLL balances or undue IRPJ/CSLL payments, due to exclusion from the subsidy calculation base, may be included in the program by submitting PER/DCOMPs transmitted by 29/12/2023.
Finally, article 13 of Law 14.789/2023 is still pending regulation, which provides for the possibility of settling tax debts that have or have not been registered as active debt, as well as cases that are still controversial in administrative or judicial litigation.
Payment methods and benefits
The program allows debts to be paid in installments in up to 84 months, with the exception of social security debts, for which the maximum term is 60 months.
Tax debts subject to self-regularization can be settled in two ways:
1.Payment of the consolidated debt, with an 80% reduction, in up to 12 monthly and successive installments; or
2. payment of at least 5% of the amount of the consolidated debt, without reduction, in up to 5 successive monthly installments, the remainder of which can be paid in two ways:
- In up to 60 monthly and successive installments, with a reduction of 50% of the remaining amount of the debt; or
- In up to 84 monthly and successive installments, with a 35% reduction in the remaining amount of the debt.
It is worth remembering that each installment will be obtained by dividing the amount of the consolidated debt by the number of installments informed in the application, observing the minimum limit of R$ 500.00 (five hundred reais).
As you can see, the program is advantageous for resolving pending tax issues related to subsidies.
If you have any questions, our tax team is available for clarification and guidance on the self-regularization program.
