The Brazilian Supreme Federal Court has scheduled for April 29th the hearing of the Declaratory Appeals filed by the National Treasury in Extraordinary Appeal No. 574.706/PR, which concerns the exclusion of ICMS (a Brazilian state sales tax) from the calculation basis of PIS and COFINS (Brazilian federal social security contributions).

These appeals request the modulation of the effects of the ruling issued by the Supreme Court in 2017, which excluded ICMS (a Brazilian state tax) from the tax base of the aforementioned contributions.

In another move, the National Treasury wants the decision to take effect only after the Supreme Court rules on the appeals, arguing that the process has a huge impact on federal coffers.

Currently, the Regional Federal Courts, in their decisions, faithfully follow the thesis established by the Supreme Court, under the general repercussion regime, that: "ICMS (a Brazilian state sales tax) does not form part of the calculation basis for the incidence of PIS and COFINS (federal social security contributions).".

News commented on by Pedro Guzenski, Lawyer, graduated in Law in 2019 by the Catholic University of Santos, OAB/SP No. 445.637.

Source: jota.info