Strategic sectors such as agribusiness, transportation, energy and fuels, health and pharmaceuticals, which operate with products that are exempt from or subject to a zero rate, began 2026 with an increased tax burden.
This effect stems from the partial reintroduction of taxes on these operations and the corresponding prohibition on the use of tax credits.
Effective from January 2026, Complementary Law n. 224/25 reduced the scope of tax benefits under the Social Integration Program and the Contribution for Social Security Financing. Operations that were previously entirely exempt, either through exemption or zero tax rate, have become subject to taxation. In addition to the 10% tax on the standard rate, there was a restriction on the crediting of Social Integration Program and the Social Security Financing Contribution on acquisitions linked to these operations. In other words, although there is taxation on output, the system prevents the deduction of previous tax costs, compromising the functioning of the non-cumulative tax regime.
Given this scenario, we highlight 5 points that deserve attention:
1.Taxation of transactions benefiting from exempt and zero rate: Complementary Law No. 224/25 provides for the application of a 10% rate corresponding to the standard rates of the PIS and COFINS on transactions previously covered by exempt or zero rate.Thus, under the cumulative assessment regime, 10% will be levied on 0.65% (PIS) and 3% (COFINS). Under the non-cumulative regime, 10% will be levied on 1.65% (PIS) and 7.6% (COFINS).
2. Prohibition of the right to credit: According to CL n. 224/25, the application of the 10% rate to transactions previously benefiting from exemption or a zero rate does not generate the right to claim a tax credit for the purchaser of goods and services. The restriction on credit stems from the very nature of the tax benefit, as stipulated in the legal text.
3. Principle of non-cumulativity Violation: The prohibition of the right to tax credits contradicts the principle of non-cumulativity, which seeks to avoid cascading taxation. The tax should only apply to the value added at each stage of the supply chain. For this, the taxpayer needs to offset what has already been paid in previous phases. When there is an incidence without the right to credit, the system ceases to be neutral and economic cumulation begins, even if formally disguised.
4. Ninety-day waiting period: The 10% taxation of the standard rate of PIS and a COFINS, established by CL No. 224/25, is subject to the ninety-day waiting period. This refers to an increase in the tax burden on contributions. Although the legislator classified the measure as a “partial reinstatement of taxes” or “reduction of tax benefits,” the legal effect is unequivocal: there is taxation where there was none before. Article 195, §6, stipulates that social contributions can only be demanded after 90 days have elapsed from the publication of the law that established or increased them. Therefore, the ninety-day period is mandatory, effective April 1, 2026.
5. Financial Impact: The financial impact is direct: the unrecoverable cost is incorporated into the price or absorbed by the company. Sectors with regulated prices, long-term contracts, low elasticity of pass-through to the consumer, long or input intensive supply chains are the most affected. An immediate review of pricing policies and existing contracts is essential to mitigate economic imbalances.
CL n. 224/25, by taxing previously exempt operations without allowing credits of PIS and COFINS, violates the principle of non-cumulativity, enabling companies to seek the preservation of rights through legal action. Adopting a preventive legal strategy, combined with internal adjustments to contracts and systems, ensures legal certainty and protection against undue charges that compromise the economic and financial balance of operations.
