[REVISION HISTORY]

Brazilian judicial rulings on tax disputes

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2026-10-25 20:31 UTC → 2026-11-03 08:30 UTC · added ~~removed~~

The Brazilian Supreme Federal Court (STF) has issued several significant rulings regarding tax calculations and constitutionality. In ~~one~~ a 6-5 decision, the court ruled ~~6-5~~ 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. ~~Additionally,~~ 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.

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