In an article published on the website Revista Consultor Jurídico (ConJur), our partner Tatiana Del Giudice Cappa Chiaradia commented on the publication of Provisional Measure 1.185/2023. In practice, if it is approved, from 2024 there will no longer be an exclusion of tax benefits from the basis for calculating Corporate Income Tax (IRPJ) and Social Contribution on Net Profits (CSLL).
Companies will now tax the benefits as normal, but will be able to claim tax credits on the amounts received to set up or expand an economic enterprise. “Not only that, but the Provisional Measure allows the taxation of state tax benefits, for example, bringing yet another chapter to the tax war and a disrespect for the federal principle, and, of course, it will probably cause an increase in judicial administrative litigation within the countless questions that will arise.”
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