Last week, the Federal Supreme Court (STF) made a significant decision: it suspended nationwide legal proceedings related to the collection of Funrural, the social security contribution to the Rural Workers’ Assistance Fund. This suspension was ordered by Justice Gilmar Mendes as part of a Direct Action of Unconstitutionality (ADI 4395) filed by the Brazilian Association of Meatpacking Plants (Abrafrigo).
This decision directly affects individual rural producers and companies purchasing rural produce. The main point under discussion is subrogation—who should be responsible for collecting this contribution? Although the Supreme Federal Court (STF) already considered the charge constitutional in 2022, there is still no definition regarding this specific responsibility.
The suspension avoids multiple conflicting decisions in lower courts, bringing greater predictability to companies and producers. For those facing tax enforcement or at risk of account freezing, this decision may offer temporary relief. However, taxpayers requiring certificates of tax compliance will still have to seek legal guarantees.
The Supreme Federal Court (STF) is expected to finalize the ruling, clearly defining who should bear the Funrural tax burden. Until then, the ruling provides some breathing room for the companies involved, but it doesn’t eliminate the need for legal counsel.
For rural producers and acquiring companies, it is essential to review their tax obligations and prepare for different scenarios.
