Global Daily Tax News, Brazil Confirms Carry Forward Of Tax Credits Under New VAT, (Jun 10, 2026)

Brazil's Federal Revenue Service has issued a statement clarifying that PIS, PASEP, and COFINS tax credit balances will be preserved during the transition to the nation's new federal value-added tax, CBS, and may be credited against liability or refu ...

The Brazilian Federal Revenue Service noted Complementary Law No. 214/2025 establishes clear rules for the use of PIS/PASEP and COFINS credits during the transition to the Contribution on Goods and Services (CBS), scheduled for January 2027.

The tax agency clarified that PIS/PASEP and COFINS credits:

remain valid even after the contributions cease to exist;
may be used to offset CBS debts; and
may be reimbursed in cash or offset against other federal taxes, subject to the rules established in existing law.

These rules apply to both existing credits and those acquired up to the transition in 2027, the tax agency said, adding that existing credit balances will be automatically transferred.

According to the tax authority, approximately 100,000 companies hold PIS/COFINS credits worth a total of BRL140bn (USD27bn).

Global Daily Tax News, Brazil Confirms Carry Forward Of Tax Credits Under New VAT, (Jun 10, 2026)

The tax agency clarified that PIS/PASEP and COFINS credits:

remain valid even after the contributions cease to exist;
may be used to offset CBS debts; and
may be reimbursed in cash or offset against other federal taxes, subject to the rules established in existing law.

These rules apply to both existing credits and those acquired up to the transition in 2027, the tax agency said, adding that existing credit balances will be automatically transferred.

According to the tax authority, approximately 100,000 companies hold PIS/COFINS credits worth a total of BRL140bn (USD27bn).