On January 12, 2023, an extra edition of the Federal Official Gazette was published which included tax measures seeking to reduce Brazil's fiscal deficit though the increase of the federal revenue.

Among the changes foreseen in the published measures, we highlight: (i) the reestablishment of the casting vote – tiebreaker in favor of the National Treasury – in the Brazilian Administrative Council of Tax Appeals (Conselho Administrativo de Recursos Fiscais – "CARF"); (ii) the amendment of Laws No. 10,637/2002 and 10,833/2003 to exclude ICMS from the levy and calculation basis of PIS and COFINS credits, pursuant to the decision issued by the Brazilian Federal Supreme Court ("STF") in RE 574,706 (Theme No. 69 with general repercussion); and (iii) exclusion of late payment fines and ex-officio fines to stimulate the payment of debts subject to tax proceedings, provided that the confession is made by April, 30, 2023.

The Federal Government also announced a Fiscal Litigation Reduction Program ("PRLF"), which establishes the conditions for exceptional Tax Settlement Agreements in different modalities related to the collection of taxes subject to tax proceedings. The enrollment in the PRLF must be made between February 1, 2023 and March 31, 2023, and involve the following benefits:

a) Settlement of tax credits with appeal pending judgment in the DRJ or CARF with a portion of the outstanding balance paid in cash and the remainder using credits arising from tax loss and CSLL negative calculation base, calculated up to December 31, 2021;

b) Negotiation of tax credits with an appeal pending judgment in the DRJ or CARF, with a down payment of an amount equivalent to 4% of the consolidated value of the credits, and the remainder paid with a reduction up to 100% of the amount of interest and fines; and

c) Negotiation of credits with a value up to 60 minimum wages that have as taxpayer a natural person, micro-enterprise or small business, with a down payment, of an amount equivalent to 4% of the consolidated amount of credits, paid in up to four monthly and successive installments, and the remainder paid in up to two months, with a reduction of 50%, or in up to eight months, with a reduction of 40% percent.

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Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."

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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.