The Brazilian Federal Revenue Service (RFB), through COSIT Ruling No. 3 of January 12, 2026, issued a relevant interpretative shift by recognizing the ineffectiveness of the limitations imposed by Decree No. 10,854/2021 with respect to the deduction of expenses incurred under the Worker Food Program (PAT) for purposes of calculating taxable income.
This interpretation is particularly relevant for legal entities taxed under the actual profit regime (Lucro Real), especially those that use the PAT as a corporate benefits policy combined with tax efficiency.
Overcoming Sub-Regulatory Restrictions
Decree No. 10,854/2021 had introduced significant restrictions to the PAT tax incentive, limiting the deduction:
- to expenses incurred for employees earning up to five minimum wages;
- to an individual limit equivalent to one minimum wage per employee.
In the COSIT Ruling, the Federal Revenue Service recognized that such limitations exceeded the scope of the regulatory authority, as they lacked support in the legislation that created the benefit. In other words, the decree could not restrict a right established by law.
As a result, the original statutory framework is reinstated, allowing food-related expenses for all employees—regardless of salary range—to be included in the calculation base of the tax incentive, without any individual limitation tied to the minimum wage.
However, the overall deduction ceiling of up to 4% of the IRPJ due at the 15% rate remains applicable, as provided by the governing legislation of the PAT.
Possibility of Recovering Amounts
The recognition of the ineffectiveness of the restrictions opens the possibility for companies to evaluate potential overpayment of IRPJ in previous fiscal years, allowing them, in principle, to seek refunds or offsets of amounts unduly paid, subject to the five-year statute of limitations.
This measure may represent a significant financial impact, particularly for companies with large workforces and robust employee benefit structures.
Linear Reduction of Tax Benefits as of 2026
Alongside this interpretative advancement, Complementary Law No. 224/2025 introduced a 10% linear reduction in federal tax benefits, including those related to IRPJ and CSLL, effective as of the 2026 fiscal year.
The PAT incentive was not included among the exceptions provided by the law, nor in the Single Annex of Normative Instruction RFB No. 2.305/2025. Consequently, it is subject to the linear reduction.
On January 26, 2026, the Federal Revenue Service clarified the operational method for implementing this reduction through Frequently Asked Questions (Answer No. 21).
Calculation Method After the Reduction
For tax incentives subject to a percentage cap based on the tax due (as in the case of the PAT), taxpayers must:
- Apply 90% to the statutory deduction limit (4% of the IR due at the 15% rate);
- Apply 90% to the amount of expenses forming the basis of the incentive;
- Consider as the deductible amount the lower of the two results.
Illustrative Example Provided by the Federal Revenue Service
- Recorded expense: R$ 1,000.00
- IRPJ due at the 15% rate: R$ 10,000.00
- Legal 4% cap: R$ 400.00
After applying the reduction:
- 90% of the cap: R$ 360.00
- 90% of the expense: R$ 900.00
The deductible benefit will be R$ 360.00, as it is the lower amount.
In practice, although the calculation base of the incentive has been expanded by removing the decree’s restrictions, the final value of the tax benefit will be objectively reduced by 10% as of 2026.
Final Considerations
The current scenario reflects a complex dynamic: on the one hand, the Federal Revenue Service acknowledges the supremacy of statutory law over regulatory provisions, restoring the broader scope of the PAT incentive; on the other hand, the fiscal policy of linear reduction of tax benefits imposes a quantitative reduction of the incentive.
For companies, this scenario requires:
- review of historical calculations;
- evaluation of potential tax credit recovery;
- adjustment of tax projections for 2026 and subsequent fiscal years;
- integration between tax, accounting, and human resources departments to properly measure the financial impact.
This is a strategic matter with direct implications for the calculation of IRPJ and CSLL, requiring individualized technical analysis, particularly for large corporate structures.