The Federal Revenue began to allow the review of ISSQN assessments and the return of amounts paid by taxpayers who lost the exemption after a reassessment of the degree of incapacity. The change applies to situations where disability has fallen below 60% but resulted from the same clinical pathology.
According to , the new understanding was disclosed by AT through a circulated letter and applies to the IUC the principle of the most favorable assessment, which was already being followed in matters of IRS. In practice, the Tax Authorities recognize that a decrease in the degree of disability in a first medical reassessment should not automatically remove tax benefits already recognized.
Who can benefit?
The measure may cover taxpayers who had a level of disability equal to or greater than 60% and who, after a new medical board, had this level reduced to a lower value. To maintain protection, the reduction must be related to the same clinical pathology.
According to the AT, in these cases it must be considered that the taxpayer continues to benefit from the tax regime resulting from the degree of disability previously attributed, as long as this degree was equal to or greater than 60%.
The IUC Code provides for exemption for people with disabilities whose degree of disability is equal to or greater than 60%, in relation to vehicles covered by the categories and conditions provided for by law.
Returns can cover four years
The change may have practical effects for those who lost their exemption and paid IUC in recent years. The circulated letter allows these taxpayers to request a review of the tax assessments.
The request can be made under the terms of article 78 of the General Tax Law, which allows the review of tax acts within four years after assessment or at any time if the tax has not yet been paid, when there is an error attributable to the services.
This means that the taxpayer can try to recover amounts of IPVA unduly paid in the last four years, as long as the situation fits into the new understanding of the Federal Revenue Service.
Protection is not definitive
Despite the change, the IRS clarifies that this protection is not unlimited. If, during a second medical reassessment, a disability level of less than 60% is again attributed, the principle of the most favorable assessment will no longer apply.
In this case, the taxpayer loses access to the IUC exemption from the moment that, for tax purposes, he no longer meets the required conditions.
AT also highlights a particularity of the IUC: the tax is due on the anniversary date of the vehicle’s license plate. It is on this date that Finance checks whether or not the taxpayer meets the requirements to benefit from the exemption.
Registration date can make a difference
This rule may lead to different situations between taxpayers with similar clinical cases. If the anniversary of enrollment occurs before the second medical examination, the taxpayer may maintain the exemption in that year. If it occurs later, you may lose the benefit in the same year.
TA gives practical examples to explain this difference. A taxpayer with an initial disability of 60%, reduced to 40% in a first reassessment and confirmed again in 2025, may maintain the exemption if the anniversary of enrollment occurs before this second reassessment. If your registration has an anniversary after the new medical board, you may lose your exemption that year.
Permanent certificates remain valid
The document also clarifies that medical certificates of multipurpose disability relating to definitive permanent disabilities equal to or greater than 60% remain valid, without the need for new assessment.
Certificates relating to temporary disabilities remain valid only during their respective validity period.
The Revenue also clarifies that, when the reduction in the degree of disability results only from the application of new technical criteria from the National Table of Disabilities, and not from an effective clinical improvement, the previous degree that is most favorable to the taxpayer must be maintained.
What should taxpayers do?
Anyone who lost their IUC exemption after a review of the degree of disability must confirm whether the reduction occurred during the first reassessment, whether it concerns the same pathology and whether they have paid tax in the meantime.
If you meet these requirements, you can submit a request for review of the assessments with the Federal Revenue, invoking the new understanding and article 78 of the General Tax Law.
The change comes at a time when complaints from taxpayers who lost tax benefits following medical reassessments have increased, despite no significant clinical improvement. With this guidance, the IUC regime comes closer to the understanding already applied to IR and may allow tax refunds to those who no longer benefit from the exemption unduly.
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