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Income tax will change;  The decision is unprecedented

Income tax will change; The decision is unprecedented

The new change in the basis for calculating income tax (IR) promises to benefit businesses across the country. This novelty comes after the ruling issued in the first session of the Supreme Court of Justice (STJ), this Tuesday (16).

The decision, which is considered unprecedented in court, got a narrow result: by 3 votes to 2 in favor of the taxpayer. According to STJ, the procedure will be applied to the calculation system based on real profit, but it is valid only for companies whose annual turnover exceeds the suggested maximum. Want to know more? Then see below.

The decision applies to businesses across the country. (Photo: iStock).

Income tax will change

From now on, companies in the country will be able to deduct amounts paid to officers and directors from the basis of the IR account. And there’s more: the discount request can be made independently if the payments are fixed and monthly.

This understanding came from a ruling issued by the first body of the Supreme Court of Justice, this Tuesday (16). The result of the decision, which until then was considered unprecedented in court, ended with a narrow: 3 votes to 2 in favor of the taxpayer.

As mentioned, according to STJ, the scale will reach the calculation system on the basis of real profit, in which there are companies with revenues of more than R$ 78 million annually.

Namely, the case was stopped by STJ after the opponent was dismissed in the Federal Regional Court of São Paulo (TRF in District III). For judges, the measure will only have support if it is done in fixed and monthly payments. Thus, the TRF District Court III invoked Standard Instruction No. 93, of 1997, drafted by the Federal Revenue Service. Payments not equal to the fixed monthly wage are not deductible.

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On the other hand, in Syrians for Truth and Justice, married couples gained another understanding. In sum, all operating costs and expenses are, for most of the Ministers of the First Party, deductible from income tax under the system of real profit; Which, in this case, will be the total amount of income minus expenses.

see also: Real estate, land, cars, etc. at a discount of up to 50%? Find out how to participate in the Federal Justice Auction!


For Minister Regina Helena Costa, the case rapporteur, the deductions hindrance will find support with specific law in place, not just with standardized instructions on the subject. However, ministers Jorgel de Faria and Sergio Coccina disagreed with Costa’s understanding.

Justices Benedetto Gonçalves and Manuel Erhard accompanied the minister and formed a majority, extending the income tax deduction to directors and directors in companies.

see also: Income tax refund: Alert, the fourth installment will be paid later this month