The correct calculation of Corporate Income Tax (IRPJ) and the Social Contribution on Net Profit (CSLL) is one of the main challenges faced by Brazilian legal entities subject to the actual profit (lucro real) regime.
In this context, the potential to incorporate PIS and COFINS credits into the acquisition cost of goods and services stands out, a practice that can produce positive economic effects and even enable the recovery of improperly paid taxes.
Below are 5 key aspects that must be considered to properly understand and take advantage of this opportunity within tax management.
1. PIS/COFINS credits and acquisition cost: legal basis: Current Brazilian tax legislation allows the charges levied on the acquisition of goods and services to be included in the cost for purposes of calculating IRPJ and CSLL. This raises the question: should PIS and COFINS credits be excluded from such cost? The answer lies in the differentiation between taxes and contributions, as well as the absence of any specific legal provision requiring such exclusion in the context of profit-based taxes.
2. Conceptual distinction between taxes and contributions and their tax implications: While taxes such as ICMS and IPI, because they are itemized on fiscal documents and recoverable, are excluded from the acquisition cost for calculating taxable profit (in accordance with express legal provisions), contributions like PIS and COFINS are of a different nature. Since they are not considered indirect taxes and are generally not itemized on invoices, they do not qualify as “recoverable taxes.” Therefore, they are not subject to the same exclusion logic from cost composition, as established by consolidated legal interpretation.
3. Jurisprudential and administrative interpretation: The Brazilian Administrative Council of Tax Appeals (CARF) has consistently held that there is no legal basis for excluding PIS and COFINS credits from the acquisition cost for purposes of calculating IRPJ and CSLL. This guidance reinforces the position that such credits can legitimately be included in cost composition, thus expanding the deductibility base and consequently reducing the tax burden on profit.
4. Practical effects and potential gains for companies: Including PIS and COFINS credits in the acquisition cost calculation reduces the IRPJ and CSLL tax base, resulting in significant tax savings. Additionally, companies may review the payments made over the past five years and potentially request the refund of unduly paid amounts, either through administrative or judicial channels—positively impacting their cash flow.
5. Strategic guidelines for tax managers and departments: Given this scenario, it is advisable for managers to assess the practical effects of this thesis on their company’s cost structure, ensuring proper document organization and revising applicable accounting and tax procedures. Implementing this strategy requires specialized technical support, both for proper application and for guiding any credit recovery measures.
Correctly allocating PIS and COFINS credits in the acquisition cost can represent a strategic advantage, contributing to improved tax efficiency and a stronger financial position for Brazilian companies. To achieve this, it is essential to review the compliance of current procedures and seek expert guidance, turning tax obligations into opportunities for planning and fiscal optimization.
