Brazil's Receita Federal pushes tax compliance on credits and income‑tax reporting

The Federal Revenue Service (Receita Federal) identified discrepancies totaling roughly R$ 44 billion in PIS and Cofins credits reported by about 12,000 companies. The agency will instruct these firms to correct the information through the Digital Tax Contributions Bookkeeping (EFD‑Contribuições) to ensure the credits can be used without obstacles as Brazil prepares for a tax reform that will replace PIS and Cofins with a single Contribution on Goods and Services (CBS) starting in 2027.

For the 2026 income‑tax filing season, the Receita Federal also requires taxpayers to declare amounts received from the Guarantee Fund for Length of Service (FGTS) and the 40 % termination penalty. Though these amounts are tax‑exempt, they must be reported to avoid fines. Failure to declare or late submission can trigger penalties of at least R$ 165.74 and possible inclusion in the tax‑audit system.