From 2025 onwards, banks will be able to start deducting losses related to loan defaults on the basis of calculation of Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL)
O approved a bill that will postpone the implementation of tax deductions for financial institutions. This measure has the potential to provide the federal government with additional revenue of R$16 billion next year. The project, which had already been approved by the Chamber of Deputies, received validation from the Senate in a symbolic way. From 2025, banks will be able to start deducting losses related to loan defaults on the basis of calculation of Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL). The proposal, which was presented by the government leader in the Chamber, José Guimarães, changes the starting date of a 2022 law that established uniform criteria for recording and deducting these losses.
With the new legislation, the transition time for banks to be able to deduct their losses increased from three to seven years. Furthermore, this transition can be extended to up to ten years, depending on certain conditions. The project’s rapporteur in the Senate, Eduardo Braga, emphasized the importance of this additional revenue to guarantee the balance of public accounts. This change represents a government strategy to strengthen revenue at a time when the federal budget is facing challenges.
Published by Sarah Paula
*Report produced with the help of AI
