Brazilian Federal Court grants tax credits to agribusiness company

A Federal Court in Ponta Grossa has recognized the right of an agribusiness company to claim PIS and Cofins tax credits on products that became subject to taxation following changes introduced by Complementary Law (LC) 224/2025.

Previously, these agricultural products, including fertilizers, seeds, and certain grains, were subject to a zero tax rate. While the new legislation imposed a tax rate equivalent to 10% of the standard non-cumulative regime, it maintained restrictions on claiming credits. The court ruled that maintaining this restriction despite the imposition of effective taxation compromises the logic of non-cumulativity, granting the company the right to credit the values paid during acquisition.