Provisional Measure No. 1,128/2022, if converted into law, will modify, as of January 1, 2025, the criteria by which financial institutions and similar institutions will determine and deduct the Provision for Doubtful Accounts (PCLD) from the calculation bases of IRPJ and CSLL.
The main change is when losses are deducted.
According to the explanatory memorandum of the aforementioned MP, the modification aims to determine that the deduction only occurs in the assessment period corresponding to the loss, in order to avoid its use on a current or future date based on subjective criteria adopted by financial institutions, or even accumulation in subsequent periods.
The loss incurred will be calculated by applying a percentage, increasing according to the time of delay in payment of principal or charges, starting from the month in which the operation is in default, on the balance of the credit operation, limited to the total balance.
It is worth highlighting that the MP establishes that losses related to credits defaulted up to 12/31/2020 and that have not yet been deducted, will only be subject to exclusion from the IRPJ and CSLL bases at a rate of 1/36 for each month of the assessment period, starting in April/2025.
