Supreme Court Excludes Presumed ICMS Credits from PIS/Cofins Tax Base
Federal Supreme Court rules that ICMS is not part of the PIS and Cofins calculation base
On Wednesday (7), the Brazilian Supreme Court (STF) ruled that presumed credits of the State Value-Added Tax (ICMS) cannot be included in the calculation base of the Social Integration Program (PIS) and the Contribution for Social Security Financing (Cofins).
Following this decision, companies that used presumed ICMS credits to reduce the calculation base of these taxes must adjust their assessment routines to exclude the ICMS amount from the PIS and Cofins calculation.
The ruling reinforces the interpretation that the ICMS, by its very nature, does not form part of the calculation base for social contributions, aligning tax practices with the precedent established by the STF.
With information from Agência Brasil.
Source: Agência Brasil
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