A decision issued by the Federal Regional Court of the 2nd Region (TRF2) recognized that expenses related to implementing measures to comply with the General Data Protection Law (LGPD) can be credited to the PIS and COFINS tax bases, given that such expenditure is an essential input for the development of a company’s economic activity. The decision was issued in a lawsuit filed by a technology company specializing in financial services.
The decision highlighted that, through legal imposition, companies must adopt several measures to adapt the processing of personal data to what is determined by the LGPD, and, therefore, such investment is mandatory for business activity.
Furthermore, the decision recognized the taxpayer’s right to recover unduly collected PIS and COFINS amounts without crediting expenses for adapting the company’s internal procedures to what is determined by the LGPD.
Therefore, taxpayers operating in segments that had to incur heavy expenses to adapt to the LGPD may, therefore, file a lawsuit to ensure their right to credit.
