Brazil Supreme Court to rule on Cofins-Importation tax surcharge

The Brazilian Supreme Federal Court (STF) is set to analyze the legality of a 1% surcharge on Cofins-Importation. Ministers have formed a majority in the Virtual Plenary to recognize the general repercussion of the matter, meaning the final decision will be binding on lower courts.

The core of the legal dispute involves whether the 90-day waiting period (noventena), which prevents the collection of new taxes before 90 days have passed since the law's publication, must be applied to this surcharge. The issue stems from complex legislative changes involving Law 10.865/2004 and subsequent Provisional Measures (MPs) in 2017.

Ministers will determine if the revocation of one Provisional Measure allows for the resumption of the surcharge under the original 2004 law, and if so, whether the 90-day rule applies. The case reached the STF following an appeal against a decision by the Regional Federal Court of the 3rd Region (TRF-3), which had previously ruled that the 90-day rule was inapplicable.