Federal Tax Refund, Rebate, Reimbursement or Offset

Federal Tax Refund, Rebate, Reimbursement or Offset

July 2021

The possibility of decreasing pressure on cash, in times of a crisis, is certainly an issue taxpayers consider with greater interest and frequency. Therefore, it is important to identify whether companies have taxes or contributions subject to refund, rebate, reimbursement, offset, or compensation, whether due to undue or overpayment, or reimbursement, with respect to the credits of the Tax on Manufactured Products (IPI), Contribution to the Social Integration Program (PIS) and Contribution to Finance Social Security (COFINS).

In order to use this benefit, it is necessary to carry out a thorough analysis of the company’s tax status, as well as to obtain a solid basis for the composition of tax credits, as the Brazilian Federal Revenue Service (RFB) will carry out several cross-checks between electronic information, before approving or rejecting taxpayers’ requests.

As informed in the RFB website, the credits companies inform may be subject to:

Request for Rebate, Refund, Reimbursement or Offset Form, represented by acronym PER/DCOMP, which is the means the agency provides to facilitate and simplify the taxpayer’s access (whether an individual or a legal entity) to the refund or offset of overpaid sums, as taxes or contributions applied by RFB.

PER/DCOMP is regulated by RFB Normative Instruction No. 1,717/2017.

Taxpayers may receive the respective credits in kind, by bank deposit, or set off any sums against debts also managed by RFB, by means of the PER/DCOMP form.

It is also possible to file requests for refund, rebate or reimbursement using the PER/DCOMP program, the software made available by RFB. The tool Per/DCOMP Web may also be used, as an alternative, available at the e-CAC Portal.

Whenever it is not possible to make the request using the PER/DCOMP Software or PER/DCOMP Web, the respective procedures may also be carried out using the forms available in the Exhibits to RFB Normative Instruction No. 1,717/2017, together with the supporting documents that prove the right to the credit.

Types of transactions performed using the PER/DCOMP form:

  • REFUND – Refers to the return, in kind, of any overpaid sums;
  • REIMBURSEMENT refers to the return, to taxpayer, in kind, of any bookkept sums as credits assessed in the following events:
  1. IPI – any taxpayer that determines IPI credits, pursuant to the terms of Articles 37 to 43 of RFB Instruction No. 1,717/2017, recorded according to the specific laws, may file a request for reimbursement or offset;
  2. PIS and COFINS – regulated under Articles 44 to 61 of RFB Instruction No. 1,717/2017, and applicable exclusively to the events in which the laws authorizes the assessment of credits in the regime of noncumulative application of PIS and COFINS. Credits, in these cases, may be subject to reimbursement or offset, if thus provided by law, including in relation to the presumptive credits and credits resulting from the REINTEGRA program.
  • REIMBURSEMENT – Proceeding whereby the Brazilian Revenue Service (RFB) reimburses the legal entity (or equivalent entity) relative to sums of the family allowance payment and the maternity allowance paid to insured parties at its service, in compliance, with respect to the maternity salary, to the period preceding November 29, 1999 and the benefits requested as from September 1, 3004 (RFB Normative Instruction No. 1,717/2017, Articles 62 to 64).
  • OFFSET- Refers to the use of the assessed credits, which may be refunded or reimbursed, to set off (liquidate) debts (relative to the taxes and contributions managed by RFB), whether due or to become due, according to the terms of Law 9,430/6 and Articles 65 to 79 of RFB Normative Instruction No. 1,717/2017.

Credits that have already been subject matter of any request for refund or reimbursement may be set off against any debts, provided the relevant request is pending administrative decision on the date in which the Offset Form is filed.

Period

The period for the taxpayer to request the tax reimbursement is of five years, and any inflation adjustment on the credits is calculated based on the SELIC rate.
 

Statement of the Tax Authorities

Pursuant to the terms set out in the National Tax Code (Law 5,172/66, Article 150, Paragraph Four), if the law does not determine a term for the confirmation, such period will be of five years, as from the taxable event. Once such term has expired, and if the Tax Authorities have not issued any statement, then the assessment is deemed confirmed and the credit duly expired, except in the event of proof of intent, fraud or simulation.

However, Law 11,457/2007 was enacted in March 2007, which sets forth the terms relative to the Federal Tax Management, whose Article 24 determines that the administrative decision must necessarily be rendered within up to 360 days from the filing of any motions, defenses or administrative appeals, by the taxpayers.

It is recommended for taxpayers to seek specialized legal advisory services in order to enjoy the term set forth in Law 11,457/2007.

Inflation-Adjustment of the Credits

The credit related to any taxes managed by RFB that may be refunded or reimbursed, must be refunded, reimbursed or set off with interest, equal to the SELIC reference rate for federal bonds, accumulated on a monthly basis, and interest equal to 1% in relation to the month in which the amount is made available to the taxpayer, or in which the official offset is deemed made (RFB Normative Instruction No. 1,717/2017, Article142).

Any requests for reimbursement are not adjusted for inflation according to the SELIC rate.

Lucilia Panoias
Tax Consulting Partner

2021-07-07T11:32:56+00:00 Insider|