Mudanças nas Regras Relacionadas a Incentivos Fiscais e Juros sobre o Capital Próprio

Law No. 14,789 in Brazil, effective from January 1, 2024, revises the corporate income tax treatment of tax incentives from federal, state, and municipal authorities. It changes the calculation of Interest on Net Equity (INE) and excludes several items from net equity. The law also introduces special tax-transaction and self-regularization procedures for settlements, potentially reducing the Federal Government's outstanding tax balance by up to 80%. This significant legislative change impacts the way tax incentives are accounted for in corporate taxation, affecting both the calculation of taxable income and the utilization of tax credits.