Guidance published in June 2018 provides rules relating to tax refunds and the interaction with social security liabilities.
The guidance was published as Instrução Normativa RFB nº 1.810 (13 June 2018), and it updates Normative Instruction RFB No. 1717 (17 July 2017). Among the updated measures, the new Normative Instruction introduces the ability to offset social security taxes with Brazilian federal taxes (i.e., taxes collected by the tax authority such as the corporate income tax (IRPJ) and certain social contribution on profits (CSLL and PIS, and COFINS)).
Taxpayers must meet certain conditions to participate in this offset program, such as:
Read a June 2018 report (Portuguese) prepared by the KPMG member firm in Brazil
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