Through Ruling No. 110, published on May 12, 2015, the General Tax Coordination (COSIT) of the Federal Revenue standardized the understanding that the companies may use tax credits to pay for the Economic Domain Intervention Contribution (CIDE) and Income Tax Withholdings (IRRF) due on the remittance of royalties abroad.

Payment of the CIDE and IRRF may be made using credits of any federal tax managed by the Federal Revenue, except social security contributions (INSS).

The request for offset is made online at the Federal Revenue's website through the Electronic Request for Refund, Compensation or Reimbursement and Offset Return (PER/DCOMP).

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.