Brazil courts issue rulings on loyalty points, tax credits, and loan interest caps

Brazil's high courts have issued several rulings impacting financial and tax regulations. The Superior Tribunal de Justiça (STJ) unanimously ruled that loyalty program miles and points can be seized to settle debts, provided they have measurable economic value, treating them as digital assets within a debtor's patrimony.

The Supremo Tribunal Federal (STF) validated monthly limits on the compensation of tax credits obtained through final judicial decisions for credits exceeding R$ 10 million. Additionally, the STF upheld the INSS's authority to set interest rate caps for payroll-deductible loans (consignado) to protect retirees and pensioners from abusive banking practices.

In other legal developments, a federal judge in São Paulo struck down a 10% income tax retention on dividends exceeding R$ 50,000 per month, citing violations of tax progressivity and equality. Meanwhile, the STJ is set to decide whether tips passed from companies to employees should be included in the Simples Nacional tax base. In the private sector, market experts note that while cashback remains popular, loyalty strategies are shifting toward broader engagement and personalization.