| | Before | After |
ICMS included in the PIS/COFINS credits basis (on inputs purchases) | Allowed on the amounts of purchases | Not allowed (new rules will be in force on 1 May 2023) |
Voluntary disclosure (payment of debts without penalties) | Not allowed if an audit was initiated | Allowed even in the case of ongoing audits to the extent the audit was initiated by 13 January 2023. Debts must be paid by 30 April 2023 |
Federal Administrative Procedure | | |
Casting vote | Law 13,988/2020 ruled that tied discussions should be resolved in favor of taxpayers | Tied discussions will be resolved by the casting vote, in charge of a representative of Tax Authorities |
Appeal to the administrative Court (composed by representatives of both tax authorities and taxpayers) | Except for a few cases, discussions could be addressed to the administrative Court analysis (as opposed of being analyzed solely by tax authorities) | Only discussions involving amounts higher than 1,000 minimum salaries (approx. R$1,300 million) will be analyzed by the administrative Court |
Tax settlement | Settlement of tax debts is a new process in Brazil and the legislation is being improved over the years, specially post COVID-19 pandemic. The settlement of tax debts is possible to the extent certain conditions are met. | Different levels of discounts were granted to foster the settlement, to the extent certain requirements are met. Adherence to the settlement must be made by 31 March 2023 |
