Pis and Cofins on financial income (non-cumulative regime)

Decree No. 8,426 / 2015 came into force on Wednesday (1st), which re-established the rates of the Contribution to PIS / PASEP and COFINS levied on financial income earned by legal entities subject to the non-cumulative calculation regime of those contributions.

This rule is applicable even in operations carried out for hedge purposes, earned by legal entities subject to the non-cumulative calculation regime of the referred contributions.

Taxation will also apply to legal entities that have only part of their revenues submitted to the non-cumulative calculation system for the Contribution to PIS / PASEP and COFINS.

Interest on Equity

Regarding interest on equity transactions, the aforementioned Decree determines that the previous rates are maintained, that is, 1.65% of PIS and 7.6% of COFINS.

Financial Income from Exchange Variations

We emphasize that the PIS and COFINS rates on financial income resulting from monetary variations, due to the exchange rate, related to the export of goods and services abroad, as well as obligations contracted by legal entities, including loans and financing.

Hedge operations carried out on the stock exchange

The rates of non-cumulative PIS and COFINS contributions on financial income from hedging transactions carried out on the stock, commodities and futures markets or on the organized over-the-counter market will also remain at zero. against risks inherent to price or rate fluctuations when, cumulatively, the object of the negotiated contract is related to the operational activities of the legal entity; and, intended to protect the rights or obligations of the legal entity.