Brazilian court suspends tax rise for companies using presumed profit regime

The Lucro Real tax regime requires companies to calculate corporate income tax (IRPJ) and the social contribution on net profit (CSLL) based on adjusted accounting profit, with quarterly or annual reporting depending on the company's size and activity. It applies to firms with revenue above R$ 78 million, financial institutions, entities with foreign income, and several other categories.

A federal court in Brazil (TRF‑5) granted a preliminary injunction that halts the application of a 10% increase in the presumptive income coefficients for a foreign‑trade company under the Lucro Presumido regime. The judge ruled that the statutes treating Lucro Presumido as a fiscal benefit are legally unsustainable, emphasizing that the regime merely simplifies tax calculation rather than providing a tax exemption.