Provisional Measure No. 1,128/2022 was converted into Law No. 14,467/2022, with the consequent creation of new rules for the tax treatment to be adopted in relation to losses in the receipt of credits incurred by financial institutions and other institutions whose operation depends on authorization from the Central Bank of Brazil.
The rules will come into effect in January 2025, giving companies in the financial sector time to make the necessary adjustments.
Under the new rules, transactions with a delay of more than 90 days in the payment of principal and charges will be considered defaulted. The rules will also apply to losses incurred in the collection of credits arising from activities related to transactions with legal entities in bankruptcy or judicial reorganization proceedings.
In addition to defining the concept of default for tax purposes, the new rule also linked the deductibility of losses due to default to taxes corresponding to the period in which the respective loss was assessed.
It is also important to highlight that losses related to defaults characterized on 12/31/2024 that have not been deducted until that date may only be excluded from the IRPJ and CSLL calculation bases at a rate of 1/36 for each month of the assessment period, starting in April/2025.
