{"id":3151,"date":"2026-02-02T10:30:36","date_gmt":"2026-02-02T13:30:36","guid":{"rendered":"https:\/\/oliveiraalves.com.br\/?p=3151"},"modified":"2026-02-05T14:12:12","modified_gmt":"2026-02-05T17:12:12","slug":"receita-federal-limita-a-deducao-de-imposto-pago-no-exterior-no-irpj-e-na-csll","status":"publish","type":"post","link":"https:\/\/oliveiraalves.com.br\/en\/receita-federal-limita-a-deducao-de-imposto-pago-no-exterior-no-irpj-e-na-csll\/","title":{"rendered":"Federal Revenue Limits the Deduction of Foreign Taxes Paid for IRPJ and CSLL Purposes"},"content":{"rendered":"

The Brazilian Federal Revenue Service (RFB)<\/strong> issued Interpretative Declaratory Act (ADI) RFB No. 1\/2026<\/strong>, clarifying and restricting the manner in which taxes paid abroad<\/strong> by controlled or affiliated companies<\/strong> may be deducted in Brazil. The interpretation is binding on tax audits<\/strong> and has significant implications for multinational groups<\/strong>.<\/p>\n

    \n
  1. Scope of the Deduction: Strict Link to Recognized Foreign Profits<\/strong><\/li>\n<\/ol>\n

    The ADI establishes that foreign taxes paid may only be deducted from IRPJ and CSLL<\/strong> in proportion to the profits of the controlled or affiliated company that have been effectively recognized<\/strong> in the calculation of the Brazilian company\u2019s taxable profit (lucro real)<\/strong>, through the investment value adjustment<\/strong>.<\/p>\n

    Any interpretation allowing broad deductions disconnected from the foreign profits actually taxed in Brazil<\/strong> is expressly ruled out.<\/p>\n

      \n
    1. Express Prohibitions<\/strong><\/li>\n<\/ol>\n

      The act expressly prohibits:<\/p>\n

        \n
      • broad offsetting<\/strong> in the manner provided for in Article 26 of Law No. 9,430\/1996<\/strong>;<\/li>\n
      • the use of foreign taxes paid to offset monthly estimated payments<\/strong> of IRPJ and CSLL;<\/li>\n
      • the generation of negative balances<\/strong> from excess foreign tax credits.<\/li>\n<\/ul>\n
          \n
        1. Control of Excess Amounts: Part B of the LALUR and LACS<\/strong><\/li>\n<\/ol>\n

          Article 3 of the ADI further restricts the use of accumulated amounts:<\/p>\n

            \n
          • the deduction may not exceed the IRPJ and CSLL due in the relevant period<\/strong>;<\/li>\n
          • any excess does not generate a negative balance<\/strong> and must be recorded and controlled in Part B of the LALUR and LACS<\/strong>.<\/li>\n<\/ul>\n

            With this, the Federal Revenue Service puts an end to the controversy surrounding the \u201cindiscriminate\u201d use<\/strong> of such credits to offset domestic or foreign results.<\/p>\n

              \n
            1. Effects on Administrative Tax Litigation<\/strong><\/li>\n<\/ol>\n

              The Administrative Council of Tax Appeals (CARF)<\/strong> had been issuing divergent decisions<\/strong> regarding the deduction of foreign taxes, including in relation to estimated payments. With the issuance of the ADI, a trend toward stricter enforcement<\/strong> and greater alignment of administrative rulings with the restrictive position<\/strong> is expected, increasing the risk of tax assessments and unfavorable decisions<\/strong> for taxpayers.<\/p>\n

                \n
              1. Cash Flow and Compliance Impacts<\/strong><\/li>\n<\/ol>\n

                In practice, multinational companies that previously used foreign taxes paid in prior years<\/strong> to settle IRPJ and CSLL liabilities in Brazil are likely to experience an immediate cash flow impact<\/strong>, as they will now be required to pay taxes that were previously offset.<\/p>\n

                The ADI also guides the actions of tax auditors, reinforcing the need for robust controls<\/strong> and adequate documentation<\/strong>.<\/p>\n

                  \n
                1. Relationship with the STF Judgment<\/strong><\/li>\n<\/ol>\n

                  It should be emphasized that the ADI does not anticipate nor directly interfere<\/strong> with the Supreme Federal Court\u2019s judgment<\/strong> on the taxation of profits earned by foreign controlled companies<\/strong> (RE 870,214<\/strong>).<\/p>\n

                  While the STF is addressing the timing of taxation<\/strong> of such profits, the ADI deals exclusively with the deductibility in Brazil of taxes paid abroad<\/strong>.<\/p>","protected":false},"excerpt":{"rendered":"

                  The Brazilian Federal Revenue Service (RFB) issued Interpretative Declaratory Act (ADI) RFB No. 1\/2026, clarifying and restricting the manner in which taxes paid abroad by […]<\/p>\n","protected":false},"author":2,"featured_media":3164,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-3151","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tributario"],"acf":[],"_links":{"self":[{"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/posts\/3151","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/comments?post=3151"}],"version-history":[{"count":3,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/posts\/3151\/revisions"}],"predecessor-version":[{"id":3182,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/posts\/3151\/revisions\/3182"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/media\/3164"}],"wp:attachment":[{"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/media?parent=3151"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/categories?post=3151"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/oliveiraalves.com.br\/en\/wp-json\/wp\/v2\/tags?post=3151"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}