The Office of the Attorney General of the National Treasury (PGFN) has announced the expansion of the percentage allowed for using tax loss carryforwards and the negative CSLL (Social Contribution on Net Profit) calculation base to settle debts subject to federal tax settlements. The limit, previously set at 10% of the final debt amount, has been increased to 30%, and applies to the first three public notices of the Comprehensive Settlement Program (PTI), published on December 31, 2024.
The Comprehensive Settlement Program (PTI) was introduced to resolve tax disputes involving topics of significant and widespread legal controversy, with an expected tax collection exceeding BRL 5 billion in 2025. Proposals for adherence will be open until June 30, 2025.
The covered modalities include:
- Public Notice No. 25/2024: Disputes regarding the deductibility of goodwill on internal transactions and goodwill generated through a special-purpose vehicle.
- Public Notice No. 26/2024: Legal theses related to the production of non-alcoholic beverages.
- Public Notice No. 27/2024: Taxation of profit-sharing plans (PLR), stock options, and contributions to private pension plans.
In addition to the initial options, new Public Notices Nos. 36, 37, and 38/2025 have been published, consolidating the expansion of the use of tax loss carryforwards.
Practical Impacts
With this change, taxpayers may now use tax loss carryforwards and negative CSLL bases up to 30% of the remaining debt after applying discounts.
Under the most advantageous settlement model:
- A 65% discount on the total debt or enrollment amount;
- A down payment of 30%, with the remaining balance payable in up to 12 installments;
- The ability to apply up to 30% of tax loss carryforwards on the remaining balance.
This combination can result in an effective discount of approximately 75% of the original tax liability, requiring the taxpayer to pay only 25% of the consolidated debt.
Key Considerations
- Judicial Deposit Conversion: For debts fully secured by judicial deposits, the requirement to convert the deposit into government revenue prior to applying discounts remains. This may reduce the attractiveness of the settlement in such cases.
- Legal Limitations: Despite the expansion, the maximum percentage allowed under Law No. 13,988/2020 is 70% of the remaining balance, indicating that further enhancements to settlement conditions remain possible.
In addition to settlements for legal theses, the PGFN has opened a new front of negotiations for high-value tax credits (above BRL 50 million), as regulated by PGFN Ordinance No. 721/2025, with the potential to negotiate up to BRL 300 billion in tax liabilities.