Supreme Minister validates decree on collection of PIS and Cofins

Minister Ricardo Lewandowski, of the Federal Supreme Court (STF), determined today (8) the suspension of judicial decisions across the country that ruled out the application of Decree 11.374/2023. Issued on January 1, the decree reestablishes the original rates of the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (Cofins) on the financial income of large companies. The judicial conflict involving the decree began after companies began to appeal to Justice on the grounds that the rule is unconstitutional. For these taxpayers, the increase in rates for federal contributions, such as PIS and Cofins, can only take effect 90 days after the publication of the decree. Then, the Attorney General’s Office (AGU) appealed to the STF to suspend the decisions. The body claimed that the decree does not represent an increase in the tax burden, but a recomposition of the original rates. When analyzing the case, Lewandowski agreed with the arguments presented by the AGU. “I understand that there was no increase or reestablishment of the PIS/Cofins rate levied on financial income earned by legal entities subject to the non-cumulative calculation regime, in order to remove the nonagesimal precedence”, decided the minister. Signed by President Luiz Inácio Lula da Silva, the decree issued on the first day of the year replaces the decree published on December 30 by then acting President Hamilton Mourão. The text halved the PIS/Cofins rates on financial income, such as investments in the financial market, of large companies. The measure will reduce revenue by R$ 5.823 billion this year, according to the Federal Revenue Service.

Agência Brasil