Exclusion of PIS/Cofins from the calculation basis: understand this opportunity

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The STF is about to judge Theme 1067, with recognized general repercussions, which will analyze the constitutionality of the inclusion of contributions to the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (COFINS) in their own calculation bases, providing for the Exclusion of PIS/Cofins from the base itself.

This is a debate that could have a major economic impact, since, if there is a favorable outcome for the taxpayer, companies opting for Presumed Profit or Real Profit will reduce the amounts collected for both contributions, and may also be reimbursed for amounts paid in excess over the last five years.

There are many lawsuits pending in the courts regarding gambling data singapore this issue. They have been dragging on in the courts for several years, but now, with the judgment of Theme 1067, there may finally be a decision on the case, putting an end to the various lawsuits that have been piling up in the courts throughout Brazil.

Exclusion of PIS/Cofins from the calculation basis (legal bases)
The legal system defines that both PIS, established by Complementary Law No. 7/1970 , and COFINS, established by Complementary Law No. 70/1991, have as their calculation basis the revenue, which is the total revenue earned in the month by the legal entity.  

However, these taxes are social contributions, the revenues of which are allocated to the taxing entity, in this case the Union, and do not represent an increase in assets for companies, quite the opposite. Thus, they deviate from the concept of revenue and income.

In short, for obvious reasons, the amounts collected as PIS and COFINS do not belong to a legal entity, since they are transferred to the Union. Therefore, since they are funds that only pass through the company, they could not be part of the calculation basis that will be subject to the incidence of these same contributions.

In a similar case, the Federal Supreme Court (STF) recognized that, as it is not incorporated into the taxpayer's assets and, consequently, does not fall within the concept of gross revenue/income, the amounts collected as Tax on Goods and Services (ICMS) should not form part of the calculation basis for PIS and COFINS.