Published in the Federal Official Gazette (DOU) on September 16, Law 14,973/24 brings important tax changes, among which the following stand out:

  • transition regime of the Social Security Contribution on Gross Revenue (CPRB);
  • updating the value of real estate by individuals and legal entities;
  • Special Regime for General Regularization of Foreign Exchange and Tax Assets (RERCT-General);
  • updating of judicial and extrajudicial deposits; and
  • conditions for the enjoyment of tax benefits by the Federal Revenue of Brazil (RFB).

Below, we present some aspects of the main points of the standard.

Transition Regime of Social Security Contribution on Gross Revenue (CPRB)

The new rules established the maintenance of the full exemption until the end of the 2024 fiscal year. The transition to gradual repayment will begin in 2025 and will last for three years, ending in 2027. With this, we have the return of the 20% rate in 2028. The transition will occur as follows:

  • 01/01/2025 to 12/31/2025: 80% of the rates on gross revenue and 25% of the rates related to the payroll;
  • 01/01/2025 to 12/31/2026: 60% of the rates on gross revenue and 50% of the rates related to the payroll; and

  • 01/01/2025 to 31/12/2027: 40% of the rates on gross revenue and 75% of the rates on payroll.

During the transition period, there will be a gradual reduction of the additional 1% on Confins-Importation, whose extension had been justified to compensate for the exemption from payroll. The variation will be reduced as follows:

  • 01/01/2025 to 12/31/2025: 0.8%;
  • 01/01/2026 to 12/31/2026: 0.6%; and
  • 01/01/2027 to 12/31/2027: 0.4%.

Companies that choose to contribute to the CPRB system must maintain an average number of employees equal to or greater than 75% of that recorded in the previous year. Otherwise, companies will not be able to use the contribution on gross revenue from the calendar year following non-compliance, and will consequently be subject to the full 20% rate on payroll.

Updating the value of real estate by individuals and companie

According to the new law, the individual residing in the country may choose to update the value of the real estate already reported in the Annual Adjustment Statement (DAA) submitted to the RFB to the market value. The difference between the market value and the acquisition cost will be taxed by the Individual Income Tax (IRPF) at a definitive rate of 4%.

The amounts resulting from the update will be considered as an asset increase on the date of payment of the tax. These amounts must be included in the DAA's declaration of assets and rights for the calendar year 2024 as an additional acquisition cost of the respective real estate.

The legal entity, in turn, may update the value of real estate on its balance sheet to the market value. The difference between the market value and the acquisition cost will be taxed by the Corporate Income Tax (IRPJ), at a definitive rate of 6%, and by the Social Contribution on Net Income (CSLL), at a rate of 4%. The amounts resulting from the update cannot be considered by the legal entity as a depreciation expense for tax purposes.

In both options, the payment of the tax must be made within 90 days, counted from the publication of Law 14,973/24.

It is important to note that, if the sale or write-off of the property occurs before 15 years after the update, the value of the capital gain must be calculated according to the following formula: GK = value of the sale - [CAA + (DTA x %)], where:

  • GK = capital gain;
  • CAA = cost of the property before the upgrade;
  • DTA = differential of cost taxed as an update; and
  • % = percentage proportional to the time elapsed from update to sale, as follows:
  • Percentage Time elapsed from upgrade to sale
    0% ≤ 36 months
    8% > 36 months and ≤ 48 months
    16% > 48 months and ≤ 60 months
    24% > 60 months and ≤ 72 months
    32% > 72 months and ≤ 84 months
    40% > 84 months and ≤ 96 months
    48% > 96 months and ≤ 108 months
    56% > 108 months and ≤ 120 months
    62% > 120 months and ≤ 132 months
    70% > 132 months and ≤ 144 months
    78% > 144 months and ≤ 156 months
    86% > 156 months and ≤ 168 months
    94% > 168 months and ≤ 180 months
    100% > 180 months

Special Regime for the General Regularization of Foreign Exchange and Tax Assets (RERCT-General)

The new law also establishes the Special Regime for General Regularization of Foreign Exchange and Tax Assets (RERCT-Geral), which allows the voluntary declaration of resources, assets or rights of lawful origin, not declared or declared with omission or inaccuracy in relation to essential data, kept in Brazil or abroad or repatriated by residents or domiciled in the country,  according to the exchange or tax legislation.

The deadline for joining the RERCT-Geral is 90 days from the date of publication of Law 14,973/24. Adherence must be made through a voluntary declaration of the patrimonial situation on December 31, 2023, accompanied by the payment of tax and fine.

To join the RERCT-General, a single statement must be submitted to the RFB, which must contain a detailed description of the resources, assets and rights of any nature that are owned by the declarant on December 31, 2023 – to be regularized – along with their respective values in reais.

In the event that there is no balance or title to the property on December 31, 2024, the declaration must include a description of the conducts practiced by the declarant that fall within the crimes provided for in Law 13,254/16 and the respective assets and resources that he owned.

The statement must also contain:

  • the identification of the declarant;
  • information necessary to identify the resources, assets or rights to be regularized;
  • the value in reais;
  • declaration that the goods and resources originate from lawful economic activity.
  • the description of the conducts practiced by the declarant that fall within the crimes provided for by law and the respective undeclared resources, assets or rights, in the event of non-existence of a balance of the resources on December 31, 2024.

Assets or rights of any nature regularized, as well as income, fruits and accessories arising from their use, in Brazil or abroad, obtained as of January 1, 2024, must be included:

  • in the annual income tax return for the calendar year 2024 or in its rectifier, in the case of individuals;
  • in the declaration of assets and capital abroad for the calendar year 2024, in the case of an individual or legal entity, if it is obliged to do so;
  • in the corporate bookkeeping related to the calendar year of adhesion and subsequent years, in the case of a legal entity.

In the case of assets abroad, a copy of the single declaration must be submitted to the Central Bank of Brazil for registration purposes.

It should be noted that, to the income, fruits and accessories included in the declarations and regularized by the RERCT-General, the provisions of article 138 of the National Tax Code (CTN) apply. There is even exemption from the payment of late payment fines, if the inclusions are made until the last day of the deadline for joining the regime or until the last day of the regular deadline for submitting the respective annual return, whichever is later.

Update of judicial and extrajudicial deposits

According to the new guidelines, deposits in administrative or judicial proceedings of interest to the Union and its entities must be made at Caixa Econômica Federal, without the need for the depositor to travel to the bank branch or fill out physical documents.

In addition, judicial and extrajudicial deposits, in cash, of amounts related to federal taxes and contributions, including their accessories, must be made at Caixa Econômica Federal, through a specific Federal Revenue Collection Document (Darf). With this, Caixa Econômica Federal will proceed with the deposit directly in the Single Account of the National Treasury, communicating electronically to the RFB.

The new law also brought changes in relation to the updating of judicial and extrajudicial deposits. The RFB will centralize the data related to deposits, while the financial institution must keep track of the amounts deposited, withdrawn and concluded.

From this, according to the order of the judicial authority or, in the case of extrajudicial deposit by the competent administrative authority, two situations may occur:

  • the conclusion of the deposit account without the incidence of remuneration, when the amounts are destined to the public administration; or
  • the withdrawal of the amounts by the holder, plus monetary correction by an official index that reflects inflation.

In the second hypothesis, it is possible to understand that the deposits, previously updated by the Selic Rate, will be subject to the application of another index.

This change is extremely relevant, especially from the economic and financial point of view of taxpayers, especially those involved in long-term lawsuits. It reduces the amount to be raised in case of success in the lawsuit and eliminates the incidence of IRPJ and CSLL on the amounts raised.

Finally, in relation to judicial deposits in closed cases, the deadline for collection at the Federal Judiciary is two years, counting from the summons or notification.

Interested parties must be notified in advance of the closure of the deposit account. In addition, the interested party has a five-year statute of limitations to claim the restitution of the amounts, from the closure of the deposit account.

Conditions for the enjoyment of tax benefits by the Federal Revenue of Brazil

According to the new law, the legal entity that enjoys a tax benefit must inform the RFB, by means of an electronic declaration in simplified format, of the incentives, waivers, benefits or immunities of a tax nature that it enjoys, together with the amount of the corresponding tax credit.

In the event of non-delivery or late delivery of the return, the taxpayer will be subject to penalties calculated per month or fraction, levied on its gross revenue, limited to 30% of the value of the tax benefits.

It is very important to emphasize that the concession, recognition, qualification and cohabilitation of incentives, waivers or benefits of a tax nature will be conditioned by the RFB to:

  • proof of payment of federal taxes and contributions;
  • presentation of the FGTS certificate of good standing;
  • lack of specific sanctions;
  • adhesion to the Electronic Tax Domicile (DTE); and
  • registration regularity.

In this regard, we emphasize that normative instructions 2,198/24 and 2,216/24 regulate the presentation of the Declaration of Incentives, Waivers, Benefits and Immunities of a Tax Nature (Dirbi) and establish the tax benefits to be declared, among which, we highlight:

  • Emergency Program for the Resumption of the Events Sector (Perse);
  • Special Regime for the Acquisition of Capital Goods for Exporting Companies (Recap);
  • Special Incentive Regime for Infrastructure Development (Reide);
  • Tax Regime for Incentive to Modernization and Expansion of the Port Structure (Reporto);
  • payroll exemption;
  • Support Program for the Technological Development of the Semiconductor Industry (Padis);
  • Special Regime for the Petrochemical Industry (Reiq), in the modalities of reduction of rates, credits and additional credits;
  • reductions granted in the areas of operation of Sudam and Sudene;
  • suspension of PIS/Cofins-Import on raw materials, intermediate products and packaging materials carried out by companies located in the Manaus Free Trade Zone (ZFM);
  • monthly estimate not computed for IRPJ and CSLL purposes resulting from subsidy granted; and
  • benefits of the Research, Development and Innovation (RD&I) program.

Our tax team remains available to clarify any questions on the subject.