Brazil's Supreme Courts Examine Tax Base Rules for PIS/Cofins and Payroll Benefits

The Superior Tribunal de Justiça (STJ) scheduled a hearing for June 10 to consider embargoes of declaration on Tema Repetitivo 1.312. The case addresses whether contributions to PIS and Cofins must be included in the calculation base of IRPJ and CSLL for companies using the presumed profit regime. Taxpayers argue that the ruling may conflict with constitutional notions of income and the National Tax Code, seeking clarification on the scope and timing of the decision.

Separately, the Supreme Federal Court (STF) is reviewing the constitutionality of Law 14.784/2023 in ADI 7.633, which prolongs payroll tax benefits for 17 economic sectors and reduces municipal payroll contribution rates. The debate highlights tensions between legislative tax incentives and constitutional limits, emphasizing the role of institutional dialogue in Brazil’s tax policy framework.