Legislation

Federal Revenue publishes standard on the impossibility of taking advantage of PIS/Pasep and Cofins credits after the disposal of assets

On Jun-4-2018, the Federal Revenue of Brazil (RFB) published the Interpretative Declaratory Act RFB 3/2018, which influences the PIS/Pasep Contribution and the Contribution for Social Security Financing (Cofins) credits use, related to the depreciation of property, plant and equipment, after the disposal of these assets.

This act arose from the need of standardizing the PIS/Pasep and Cofins credits use on machinery and equipment, at a one forty-eighths (1/48) rate, a month, when the goods were resold, or leased to third parties before using forty-eight monthly installments, in view of what the Cosit Divergence Solution 6, of June 13, 2016, explained.

The Article 1 clarifies (emphasis added):

"Article 1. The option to calculate the Contribution to PIS/Pasep and Cofins credits in the light of the good depreciation, at one forty-eighths (1/48) rate, per month, on the acquisition value, applies to the good of property, plant and equipment while not disposed, under Paragraph 14, of Article 3 c /c Article 15, II, all of the Law No. 10833, of 2003.

Sole paragraph. In case of disposal of goods before using forty-eight (48) credit installments referred to in the caput, using remaining installments is prohibited."

The Interpretative Declaratory Act RFB 3/2018 has binding effect on RFB member departments and changes the opposite conclusions in Consultation Solutions or Divergence Solutions issued prior to its publication.

Consult here the act content.