On November 30, Law 14,740/23 was published, which provided for the encouraged self-regulation of taxes administered by the Special Secretariat of the Federal Republic of Brazil.
The Law covers allowing taxpayers to voluntarily settle, before the Tax Authorities, debts related to all taxes administered by the RFB, such as the IRPJ, CSLL, PIS/PASEP and COFINS, as well as tax credits that may be constituted between 30.11.2023 and up to 90 days after the regulation of this Law, and that result from an infringement notice, release notifications and decision-making orders that do not fully or partially approve the compensation statement. Debts determined under Simples Nacional are not subject to self-regulation.
Taxpayers may join the program between 30.11.2023 and up to 90 days after the regulation of this Law, through the confession and payment or installment payment of the full amount of the taxes confessed by them, plus interest, with the removal of any late payment and official fines.
As for benefits, taxpayers who join the program may settle their debts with a reduction of 100% of interest on arrears, upon payment of at least 50% of the cash debt and the remaining balance, in up to 48 monthly and successive installments, plus interest equivalent to SELIC. The use of tax loss credits and the negative calculation base of the CSLL is limited to 50% of the total amount of the debt, which does not prevent the issuance of a certificate of tax regularity. The amount of the credits will be determined by applying the IRPJ and CSLL rates to, respectively, the amounts of the tax loss and the negative calculation base.
According to partner Luiz Carlos Benner, a specialist in Taxes, “the Law sheds light on taxpayers who owe taxes administered by the Special Secretariat of the Federal Revenue Service of Brazil of the Ministry of Finance. Without a doubt, an excellent opportunity for taxpayers to settle accounts with the tax authorities, with a reduction in fines and interest and being able to anticipate the realization of tax losses, which can be used to offset part of the debts. A great opportunity also for the Government, which will be able to improve its cash flow by collecting overdue credits, in addition to anticipating the realization of tax losses”.
Another important point to note, according to Benner, is the non-taxation of earnings obtained from fine and interest discounts, by the IRPJ, CSLL, PIS and COFINS. Recurrently, since the year 2000, when the first Tax Recovery Law (9,964 of April 10) was published, laws on tax recovery programs have also been published, but they are not always the ideal solution for companies. If a company is unable to generate cash to pay its current taxes, plus installments, it will not be able to actually recover. Another relevant point observed throughout these tax recovery programs is that most do not apply to companies that choose Simples, despite the fact that they play a fundamental role in the economy. These companies, despite being small in size, cannot be overlooked. In any case, the time has come for companies covered by Law 14,740/23 to do their homework, to evaluate with great caution and ascertain what benefits they will actually have and, once confirmed, to join the program.
To read Law 14,740/23 in full, click here:
https://www2.camara.leg.br/legin/fed/lei/2023/lei-14740-29-novembro-2023-795011-norma-pl.html
Are you aware of this news? TATICCA has excellent specialists who can help your company understand and apply these credits to your operation.
