New PIS and Cofins rates on financial revenuesCountry-specific update: Brazil
On December 30, Brazilian Government issued Federal Decree #11,322/2022, amending Federal Decree #8,426/2015, and reducing PIS and Cofins rates applicable for financial revenues from 4.65% to 2.33% as for 1 January 2023.
However, Federal Decree #11,322/2022 was revoked on 2 February 2023, restoring previous rates (4.65%). As the Brazilian Federal Constitution establishes that the increase of tax rates should observe a 90-day holding period before the beginning of its effects, the reestablishment of PIS and Cofins rates on federal revenues should only start from 4 February 2023.
We are suggesting businesses to consider a judicial measure in order to ensure their right to apply the reduced rates on financial revenues.