- Declaratory Act No. 36/2024 was published on June 12, 2024.
- The Act nullifies provisions of Provisional Measure (MP) No. 1.227/2024 that limited cash reimbursement and offset of PIS/Cofins credits.
- The Government appears to acknowledge that limitations on PIS/Cofins credits are no longer effective.
- The MP introduces a new requirement for taxpayers to declare tax incentives, exemptions, benefits, or immunities to the Federal Revenue Service.
- Failure to declare or delays in declaring could result in penalties up to 30% of the value.
- It is unclear if this requirement extends to tax benefits from States or Municipalities.
- Further regulation is needed to clarify the scope of this obligation.
- If the Federal Revenue Service demands information on non-federal benefits, it may violate the federative pact, tax competencies, and companies’ tax secrecy, potentially leading to legal challenges.
Source: klalaw.com.br
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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