STJ Rules that IRPJ and CSLL Apply to Financial Operations Income


The STJ (Superior Court of Justice) has unanimously ruled that income from financial operations should be subject to IRPJ (Corporate Income Tax) and CSLL (Social Contribution on Net Profits). The decision was made in Special Appeals nos. 1,986,304, 1,996,013, 1,996,014, 1,996,685, and 1,996,784 (theme 1,160) under the repetitive procedure.

Taxpayers argued that income from financial investments represented a patrimonial repositioning, intended solely to prevent the devaluation of invested capital over time due to inflation.

However, the STJ justices held a different view. According to Justice Mauro Campbell Marques, the gains from investments constitute the operational profit of companies since they are considered financial income.

Furthermore, the justice stated that monetary correction remunerates capital over time and thus increases the final net worth of investors, which qualifies as a patrimonial increment, making it subject to Income Tax. As he emphasized in his decision, “monetary correction, whether agreed upon or not, is part of the income from financial investments.”

At the end of the judgment, the 1st Section established the following thesis: Income Tax (IR) and Social Contribution on Net Profits (CSLL) apply to the monetary correction of financial investments since they are legally and accounting-wise considered gross revenue as financial income components of operational profit.


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