# Brazilian judicial rulings on tax disputes

> Developing situation record from CLSTR: https://clstr.news/situations/brazilian-judicial-rulings-on-tax-disputes
> Updated: 2026-11-02T03:05:01.000Z. Sources: 13. Developments: 3.

The Brazilian Supreme Federal Court (STF) has issued several significant rulings regarding tax calculations and constitutionality. In a 6-5 decision, the court ruled that municipal service taxes (ISS) must be excluded from the calculation base for federal PIS and Cofins contributions, following a precedent regarding state-level ICMS taxes. Justice Luiz Fux noted that ISS revenue represents a financial flow between clients and municipalities rather than company patrimony.

Regarding rural taxation, the STF ruled that the Funrural social security contribution, levied on the commercialization revenue of individual rural employers, was unconstitutional for sales made prior to January 2018. While current Funrural charges remain valid, producers may seek restitution for the unconstitutional period, provided they can verify documentation and meet requirements under the National Tax Code. This restitution is not automatic and depends on whether the right to request funds was preserved under existing law.

In related legal developments, the Superior Court of Justice (STJ) maintained the inclusion of ICMS in the calculation base for PIS and Cofins within the fuel sector’s special taxation regime, rejecting attempts by alcohol companies to extend previous tax exclusion precedents to their specific volume-based model.

Looking forward, the STF is set to analyze the legality of a 1% surcharge on Cofins-Importation. The court will determine if the 90-day waiting period, or “noventena”, must be applied to this surcharge following legislative changes involving Law 10.865/2004 and subsequent Provisional Measures.

## Claims

- The STF considered the Funrural tax unconstitutional for sales made before January 2018. (reported by 3 sources)
- The Funrural tax is a social security contribution for individual rural employers based on commercialization revenue. (reported by 3 sources)
- Tax restitution is not automatic following the STF decision. (reported by 3 sources)
- Current Funrural tax collection remains valid. (reported by 3 sources)
- The National Tax Code generally establishes a five-year period to request refunds for undue payments. (reported by 3 sources)
- The ruling affects companies that collected the tax on behalf of producers through sub-rogation. (reported by 3 sources)

## Timeline

### 2026-11-02: Brazil Supreme Court to rule on Cofins-Importation tax surcharge

Brazil's Supreme Federal Court will decide if a 1% Cofins-Importation tax surcharge must respect the 90-day rule for new taxes.

2 sources. https://clstr.news/cluster/brazil-supreme-court-to-rule-on-cofins-importation-tax-surcharge

### 2026-10-25: Brazil's STF rules Funrural tax unconstitutional for sales before 2018

Brazil's Supreme Court ruled the Funrural tax unconstitutional for rural sales prior to 2018, allowing for potential refunds subject to specific documentation and legal deadlines.

4 sources. https://clstr.news/cluster/brazils-stf-rules-funrural-tax-unconstitutional-for-sales-before-2018

### 2026-10-23: Brazil Supreme Court rules on tax base disputes

Brazil's Supreme Court ruled to exclude municipal ISS from federal PIS and Cofins bases, while the STJ maintained ICMS inclusion for certain fuel sector tax regimes.

8 sources. https://clstr.news/cluster/brazil-supreme-court-rules-on-tax-base-disputes

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Cite as: Brazilian judicial rulings on tax disputes. CLSTR, https://clstr.news/situations/brazilian-judicial-rulings-on-tax-disputes