Leal Cotrim Advogados

Monetary Correction and Default Interest in Judgments Against the Government: From STF Binding Precedent 810 to the EC 136/2025 Framework — and the Prevalence of Contractual Indices Until the Filing of the Lawsuit

Rodrigo Jansen — Leal Cotrim Advogados The regulation of default interest and monetary correction in judgments against the Government is one of the most contentious issues in Brazilian public law. Over the past two decades, the legislature has repeatedly changed the criteria for updating government debts, prompting a succession of constitutional controversies that culminated in […]

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Rio de Janeiro Court of Appeals consolidates case law against Petrobras’s unilateral payment withholdings

Rodrigo Jansen — Leal Cotrim Advogados One of the most recurrent issues in disputes between contractors and Petrobras concerns the practice, adopted by the state-owned enterprise, of unilaterally withholding payments owed to its contractors in order to offset contractual penalties still under dispute. This conduct, which directly impacts the cash flow of contracting companies and […]

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Amendments to the Repetro-Sped regulation

The Repetro-Sped (IN RFB 1,778/2017), the special tax and customs regime for the economic use of goods destined to exploration, development and production of oil and natural gas, as well the Temporary Admission (IN RFB 1,600/2015) and the former Repetro regimes (IN RFB 1,415/2013), were amended by Normative Instruction RFB 1,880, published on 5 April 2019. Some of […]

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LEAL COTRIM attends “Priority Projects and Fast Track to Key Markets”

Between April 2 and 4, Leal Cotrim will participate in the event “Priority Projects and Fast Track to Key Markets”, which will take place in Norway. There, Leal Cotrim will present various legal aspects of the Brazilian O&G sector and interact with some players in the Norwegian market. […]

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STF concludes trial on tax immunity of charitable organizations

The Brazilian Supreme Court (“STF”) has declared unconstitutional a law that establishes conditions for the recognition of charitable organizations social security contributions immunity. According to STF, said conditions can only be set forth by complementary law. The STF concluded the judgment of the direct action of unconstitutionality (“ADI”) No 2028 on 8 May 2017, when the […]

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Stock Option • CARF decides on the incidence of Social Security Contributions and Withholding Income Tax

The High Chamber of the Administrative Panel of Tax Appeals (“CARF”), with the quality vote cast by its Chairman, has understood by majority of votes that the social contribution over the payroll shall levy over the difference between the amount stipulated in the stock option agreement at the time of its execution and the market […]

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CONCILIA RIO • Reduction of fines and interests for debtors of the Municipality of Rio de Janeiro

The so-called “Concilia Rio” program has been reopened, allowing the payment of debts to the Municipality of Rio de Janeiro with the reduction of fines and interests. Taxpayers interested in joining Concilia Rio must submit the corresponding application no later than by 30 September 2017, according to Municipal Decrees No 43.320 and 43.321, as of […]

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Special Tax Regularization Program (PERT) • MP 783/17

The Federal Government has recently launched the Special Tax Regularization Program (“PERT”), which grants incentives for taxpayers to pay their federal debts, irrespective of whether they are registered already. The taxpayer may opt for one of the several payment plans, each one comprising a different combination of benefits, such as the possibility to pay the […]

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New rules applicable to the federal Public Administration contracting with suppliers of services

The Ministry of Planning, Development and Management has set forth new rules for contracting the supply of services under the regime of indirect execution by the federal Public Administration (direct, autarchic and foundational). Said new rules reveal a concern of the Public Administration about public procurement procedures. On 26 May 2017, the Ministry of Planning, […]

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CARF asserts that international treaties for the avoidance of double taxation do not impede taxation on the revenues of Brazilian companies resulting from profits accrued in foreign subsidiary

In three proceedings concerning the taxation of profits accrued to foreign subsidiaries of Brazilian entities, the Superior Chamber of the Administrative Panel of Tax Appeals (CARF) has decided that the treaty for the avoidance of double taxation between Brazil and The Netherlands does not preclude the taxation of the Brazilian entity, in accordance with domestic […]

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REPORTO and RETID are extended to 2020 and 2032

On 31 May 2016, the Federal Revenue Services (RFB) published Normative Instruction 1,644/2016, which extends the validity of tax benefits set forth in the so-called Tax Regime for Incentive to the Modernisation and Enlargement of Ports Structure (REPORTO) and in the so-called Special Tax Regime for the Defence Industry (RETID). The REPORTO was created by Law 10,033/2004 […]

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