Brazil: Tax amnesty, settlement using tax losses - KPMG Global
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Brazil: Tax amnesty would allow settlement using tax losses

Brazil: Tax amnesty, settlement using tax losses

Changes have been made to a proposed tax amnesty program that, if finalized, would allow Brazilian taxpayers to resolve outstanding tax liabilities using a combination of cash and net operating losses (NOLs). The program was originally introduced by Provisional Measure 783/2017.


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In Brazil, a “Provisional Measure” (Medida Provisória—MP) is an “act” issued by the president, with the authority of law until later approved by Congress. The Provisional Measure is effective as from its date of publication for a 60-day period, but it may be extended for an additional 60-day period (for a total of 120 days) on a request from Congress.

Provisional Measure (MP 783) was intended to create a special tax amnesty program (Programa Especial de Regularização Tributária—PERT). Following recent action in Brazil’s Congress, there is now a draft law of conversion (Projeto de Lei de Conversão) that the Chamber of Deputies and the Sanado would consider and, if approved, would then be submitted to the president for either his signing or veto. 

During the legislative process, additional taxpayer benefits were added to the PERT program, including the following measures:

  • A new application deadline of 90 days after the conversion of MP 783 into law 
  • The ability to resolve tax debts in installments 
  • More generous discounts for resolving tax debts
  • The use of NOLs to resolve debts whether originating with the tax authority (RFB) or with the national treasury (PGFN)
  • A new cut-off date on the use of NOLs—those determined up to 31 December 2016 (instead of 31 December 2015) and declared until 31 July 2017
  • The tax treatment of discounts granted and “negative goodwill”
  • Penalty computation measures


Read an August 2017 report (Portuguese) prepared by the KPMG member firm in Brazil

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