COSIT Answer to Advance Tax Ruling Request No. 21\/2026 represents the most comprehensive position ever issued by the Federal Revenue Office regarding the methodology for calculating PIS and Cofins credits resulting from the exclusion of ICMS – especially in light of the wording introduced by Law No. 14,592\/2023, which now expressly deals with “ICMS levied on the transaction”.<\/p>\n\n
Although the tax administration’s understanding is explicit in reaffirming the use of ICMS highlighted<\/strong>, recent market movement and legislative dynamics suggest that the debate is not technically over<\/strong>. This is because the isolated exclusion of the highlighted value may not fully capture all the effects of “inside” taxation on price formation – especially in an environment where ICMS, PIS and Cofins are accumulated in the value of the operation itself. <\/p>\n\n From an economic point of view, this difference reflects a legitimate discussion about the effective tax base<\/strong>, and not merely a nominal one, especially for sectors with narrow margins or long production chains. It is precisely this tension between legislative technique<\/strong> and tax mathematics<\/strong> that rekindles the possibility that there is a residual ICMS embedded in the base of contributions – potentially recoverable, provided it is well-founded. <\/p>\n\n At the same time, companies that have already adopted the gross-up methodology or are considering taking advantage of the benefit should assess the impacts of the recent Cosit ruling<\/strong>. SC 21\/2026 tends to result in compensation disallowances or administrative non-approvals, requiring documentary preparation and an appropriate litigation strategy. <\/p>\n\n Thus, the discussion on the “ICMS incident” transcends the analysis of strict conformity and opens up space for broader reflections on material non-cumulativeness, symmetry in the chain and the constitutional design of indirect taxes.<\/p>\n\n Our firm offers a technical assessment of the company’s scenario, risk analysis, preparation of strategic opinions, economic modeling and the handling of all administrative and judicial litigation.<\/p>\n","protected":false},"excerpt":{"rendered":" COSIT Consultation Solution No. 21\/2026 and Tax Planning<\/p>\n","protected":false},"author":4,"featured_media":6829,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[673,676],"tags":[732,856,716,733,855],"class_list":["post-6827","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-en","category-publications-en","tag-cofins-en","tag-cosit-21-2026","tag-icms-en","tag-pis-en","tag-tax-planning"],"acf":[],"yoast_head":"\nWhy does the theme matter to your company?<\/h2>\n\n
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How can Ara\u00fajo e Policastro Advogados support you?<\/h2>\n\n