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19/06/2024HIGHLIGHTS
Law establishes limits for offsetting tax credits arising from court rulings
Act sets new limits for offsetting tax claims exceeding BRL 10 million
To combat the country’s declining tax revenue, the Brazilian Federal Government has passed Law No. 14,873/2024. The act adds Article 74-A to Law No. 9,430/1996, imposing a limit on the right to offset tax credits from final and unappealable court decisions.
Pursuant to the statute, tax offsets must now comply with a monthly limit set by the Ministry of Finance. The brackets are proportional to the total sum of credits and must not be less than 1/60th of the total amount eligible for offsetting. It should be noted that claims not exceeding BRL 10 million are exempt from this restriction.
Through MF Ordinance No. 14/2024, the Finance Ministry has established the amounts and corresponding time limits for offsetting as follows:
Sum of tax credits
|
Time limit for offsetting
|
|
10 million to 99 million |
12 months |
|
100 million to 199 million |
20 months |
200 million to 299 million |
30 months |
300 million to 399 million |
40 months |
400 million to 499 million |
50 months |
|
500 million or more |
60 months |
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