SUMMARY OF TAX TREATMENT OF INVESTMENT SUBGREENS FOR INVESTMENT FROM 01.01.2024 (LAW No. 14.789/2023)

Contribution to PIS/Pasep

The subsidies for investments, including by exemption or reduction of taxes, can no longer be excluded from the contribution calculation basis
for PIS /Pasep pursuant to art. 1, § 3, X, of Law No. 10,637, of 30 of
December 2002, because the X, of art. 1, § 3, of Law No. 10,637, of 30 of
December 2002 was revoked by Law No. 14,789/2023.

Contribution to Social Security Financing - Cofins

The subsidies for investments, including by exemption or reduction of taxes, can no longer be excluded from the COFINS calculation basis in the terms of art. 1, § 3, IX, of Law No. 10,833, of December 29, 2003,
because the IX, of art. 1, § 3 of Law No. 10,833, of December 29, 2003, was revoked by Law No. 14,789/2023.

Legal Income Tax - IRPJ

From the Complementary Law No. 160, 2017, the incentives and benefits

financial-fiscal related to ICMS granted by states and
Federal District and considered subsidies for investments by virtue of §
4 of art. 30 of Law No. 12,973, 2014, could no longer be computed
in the determination of real profit, provided that the requirements and the conditions imposed by art. 30 of Law No. 12,973, 2014, among which,
The need for which they have been granted as a stimulus to the implementation or expansion of economic enterprises. However, from the revocation of art. 30 of Law No. 12,973, 2014, by Law No. 14,789/2023 this possibility no longer exists.

Also by the same Law No. 14,789/2023, paragraph 2 of art. 38 of
Decree-Law No. 1598/77, which allowed the exclusion of the calculation of the IRPJ from
subsidies for investments, including by exemption or reduction of
taxes.


Social Contribution on Net Income - CSLL

From the Complementary Law No. 160, 2017, the incentives and the tax benefits
ICMS related to the ICMS granted by states and
Federal District, and considered subsidies for Investments by virtue of §
4 of art. 30 of Law No. 12,973, 2014, could no longer be computed
in determining the calculation base of the CSLL calculated in the form of the result of the exercise, provided that the requirements and conditions imposed by
art. 30 of Law No. 12,973, 2014, among which, the need for
to be granted as a stimulus to the implementation or expansion of
economic enterprises. However, from the revocation of art. 30 of Law No. 12,973, 2014, by Law No. 14,789/2023 this possibility no longer exists.

According to article 6 of Law No. 14,789 /2023, the legal entity qualified in the terms of the law may investigate a subsidy tax credit limited to 25%
revenues, which will not be able to be superior to the expenses corresponding to
revenues of grants (depreciation, lease, etc ..).

Ronaldo Alberto Daudt - Audit Supervisor