What tax credit recovery is
Tax credit recovery is a review of taxes already paid to identify amounts paid in excess of what was due, or credits the law allowed the company to take but that were not used.
An opportunity identified in the analysis is a hypothesis that still has to be confirmed. The right to the credit is considered recognized only when it is accepted by Brazil's Federal Revenue Service (Receita Federal) or by the state tax authority — for example, through the approval of an offset or the granting of a refund — or when it is recognized in a court decision.
Potential credit
An item identified in the analysis, still subject to confirmation.
Credit used
Used in an offset or a refund, subject to review by the tax authorities within the statutory period.
Recognized right
Confirmed by the tax authorities or by a court decision.
How we work
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Grounded in documentation
Each item is analyzed under the legislation applicable to the relevant period and against the company's own documents. The report presents estimated amounts, the supporting documentation, and the risks.
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The company's own data
Some of the tax information is obtained from the Federal Revenue Service's systems through an electronic power of attorney; state-level documents and invoices may be requested from the company.
Which companies may benefit from an analysis
An analysis makes the most sense for companies with a significant volume of transactions and with taxes levied on revenue. Some profiles often warrant a review:
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Food wholesale and retail
Operations involving a wide range of products, single-stage (monophasic) taxation, zero rate, and tax substitution.
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Resellers of single-stage (monophasic) products
Companies that resell items for which PIS/COFINS (federal contributions levied on company revenue) is concentrated at the manufacturer or importer level, including companies that have elected Simples Nacional (simplified small-business regime).
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Substituted taxpayers under ICMS-ST
Companies that purchase goods on which ICMS (the state tax on the circulation of goods and services) has already been collected in advance by the supplier under the tax substitution regime.
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Companies under the non-cumulative regime
As a rule, companies taxed under Lucro Real (actual-profit regime), which may claim PIS/COFINS credits on certain expenses.
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Companies with prior refunds
Taxpayers that received amounts as refunds of taxes unduly paid, plus interest at the SELIC rate (Brazil's benchmark interest rate).
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Companies with questions about their own tax classification
When there is uncertainty about the tax classification of the products or about the regime being applied.
Fitting one of these profiles does not mean a company has credits to recover. Each case depends on the documents and the period analyzed.
Items that may be analyzed
The existence of a credit is not automatic. It depends on the tax regime, the period, the documents, and the requirements set by legislation and by the courts.
Single-stage (monophasic) products and zero rate
Review of how products are classified and how PIS/COFINS applies to resales, depending on the tax regime.
ICMS-ST in the PIS/COFINS base
Review of payments made by the substituted taxpayer under ICMS-ST, subject to the cut-off dates established by case law.
ICMS stated on invoices
Verification of whether the ICMS stated on invoices was excluded from the PIS/COFINS base in prior periods, subject to the statute of limitations and the cut-off dates set by the courts.
Unclaimed credits
Review of PIS/COFINS credits on electricity, rent, freight, depreciation, and inputs, applicable under the non-cumulative regime.
Overpaid ICMS-ST
Analysis of cases in which the presumed tax base exceeded the actual selling price, in accordance with each state's legislation.
IRPJ and CSLL on SELIC interest
Review of the IRPJ and CSLL (corporate income tax and social contribution on net profit) levied on SELIC interest received in refunds of taxes unduly paid, for companies that have received refunds.
Some items require a court action, handled by an attorney, and depend on cut-off dates set by the courts. Every amount presented is an estimate backed by documentation.
How the initial analysis works
Initial contact
The company describes its tax regime, its activities, and the period of interest.
Access to information
Tax data is obtained through an electronic power of attorney in e-CAC (the Federal Revenue Service's online portal), granted by the company itself, and from documents the company provides.
Extraction and cross-checking
The data is organized and compared to identify items that merit attention.
Technical assessment
Each item is examined from a tax, accounting, and legal standpoint, based on the applicable legislation and case law.
Report and decision
The company receives the estimated amounts, supporting documentation, and risks for each item and decides, together with its partners or board, whether to proceed.
Documents that may be required
The list varies depending on the tax regime and the items analyzed. The most common documents are:
Digital bookkeeping filings (SPED): EFD-Contribuições, EFD ICMS/IPI, ECD, and ECF.
XML files of inbound and outbound invoices.
Product master data with tax classification codes (NCM).
Simples Nacional returns (PGDAS-D), where applicable.
Federal and state tax payment forms (DARF and ICMS payment forms).
Prior refund proceedings or decisions, if any.
Some of this data can be obtained from the Federal Revenue Service's systems through the electronic power of attorney; state-level documents and invoices may be requested from the company.
How identified opportunities are evaluated
Each item identified is recorded in the report with its estimated amount, the documents that support it, and the risks involved. From there, how the credit can be used depends on its nature:
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Administrative offset
Use of the credit to settle other federal taxes through a federal offset request (PER/DCOMP), subject to approval by the Federal Revenue Service.
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Refund
A request for repayment of the amount unduly paid, reviewed by the tax authorities.
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Court action
For legal theories that depend on decisions by the courts. Court actions are handled exclusively by an attorney duly admitted to the Brazilian Bar (OAB).
The path is chosen case by case, considering the tax regime, the period, and the risks of each item.
Factors that affect feasibility
Tax regime
Simples Nacional, Lucro Presumido (presumed-profit regime), and Lucro Real have different rules; some credits exist only under the non-cumulative regime.
Period analyzed
As a rule, a refund or offset may be requested for undue payments made in the last five years.
Cut-off dates set by the courts
Some legal theories apply only from dates defined in decisions of the STF (Brazil's Supreme Federal Court) or the STJ (Superior Court of Justice).
Quality of documentation
Incomplete or inconsistent bookkeeping filings may reduce an item or make it unviable.
State legislation
For ICMS-ST, refund rules vary from state to state.
Review by the tax authorities
Offsets may be reviewed by the Federal Revenue Service within the statutory period; credits that are not approved must be paid back with statutory interest and penalties.
Tax reform
Constitutional Amendment 132/2023 provides for PIS and COFINS to be replaced by the CBS (the new federal consumption tax) starting in 2027, with transition rules for the use of credit balances.
Would you like to assess your company?
Request a tax assessmentProfessional responsibility
Augustus Consultoria is responsible for client service and for the relationship with the company. Augustus is not a law firm. Activities reserved to the legal profession, such as court actions, are performed exclusively by an attorney duly admitted to the Brazilian Bar (OAB).
Electronic power of attorney
- The company chooses which services it authorizes in e-CAC.
- The validity period is set by the company, within the limits allowed by e-CAC.
- The power of attorney can be revoked at any time in e-CAC.
Frequently asked questions
Is credit recovery guaranteed?
No. The analysis identifies potential credits. The right is confirmed only when it is accepted by the tax authorities or recognized in a court decision, and the amounts in the report are estimates.
How long does it take to recover the credit?
There is no set timeframe. It depends on the volume of data, the period analyzed, how the credit is used, and the review by the Federal Revenue Service, the state tax authority, or the courts.
Which periods can be reviewed?
As a rule, payments made in the last five years, subject to the cut-off dates set by the courts for each legal theory.
Can Simples Nacional companies have credits?
In some situations, such as the resale of single-stage (monophasic) products and, depending on each state's legislation, overpaid ICMS-ST. Credits under the non-cumulative regime do not apply to Simples Nacional.
Does the company need to grant access to its tax data?
Some of the information is obtained from e-CAC through an electronic power of attorney granted by the company itself, which chooses the authorized services, sets the validity period within the system's limits, and can revoke it at any time.
Is Augustus Consultoria a law firm?
No. Augustus Consultoria handles client service and the relationship with the company. Activities reserved to the legal profession, such as court actions, are performed exclusively by an attorney duly admitted to the Brazilian Bar (OAB).
How do I request an analysis?
Via WhatsApp at (21) 96413-0020 or by email at [email protected].
How to request assistance
Contact Augustus Consultoria via WhatsApp or email to start the conversation about the analysis.
- Augustus Consultoria
- Carlos Eufrazio da Cruz
- WhatsApp: (21) 96413-0020
- Email: [email protected]
- Website: https://consultoriaaugustus.com/