Publications - 22/06/21

Brazilian Federal Revenue Service (RFB) aproves tax transaction involving contributions over profit sharing

Notice No. 11/2021 was published by the Federal Revenue Service of Brazil (RFB) and the Attorney General’s Office of the National Treasury (PGFN) establishing the possibility of tax transaction involving social security contributions on profit sharing, arising from the interpretation of legal requirements for the payment of profit sharing to employees and directors without the collection of contributions.

Thereby, taxpayers will be able to settle debts by making a down payment of 5% on the total debt amount without discounts and the remaining with regressive discounts from 50% to 30% on the tax amount and charges, according to the number of installments.

Under the terms of the notice, the taxpayer may join the transaction until 08/31/2021, provided that it includes all debts related to the thesis and gives up administrative and judicial discussions.

If the transacted debts are already subject to installment payments, amounts already paid cannot be refunded or offset, and if they are deposited in court, the adhesion will imply the conversion of the deposit into union income, and the payment terms will only be applied on the remaining balance of the debt (not deposited). Also, the release of any guarantees will only occur by the end of the payment of all installments.

It is important to emphasize that those who adhere to the transaction must adopt the understanding given by the tax authorities regarding the collection of contributions over profit sharing, including in relation to future facts, a measure that aims to end discussions on the matter; and that the taxpayer is obliged to regularize the debts that may be registered in Active Debt or that become due within 90 days after the formalization of the transaction agreement, and the notice does not limit this obligation to debts of the same nature as those that were transacted.

The decision regarding the adhesion to the transaction must consider an analysis regarding the chances of success of the discussion in the Judiciary, depending on the specific case; as well as considering that Law No. 14.020/2020 foresaw rules that made the requirements for not levying social security contributions on PLR clearer.

(Article 171 of ctn; Law n. 13.988/2020 e Notice RFB/PGFN n. 11/2021)