As of May 1, 2023, the calculation of PIS and COFINS credits will change for companies in the non-cumulative regime, in accordance with Provisional Measure (MP) 1,159/2023.
The rule now provides that the Tax on the Circulation of Goods and Services (ICMS) will no longer be able to compose the basis for calculating the credit of the Social Integration Program (PIS) and the Contribution for the Financing of Social Security (COFINS).
This is an adaptation of the understanding regarding the exclusion of ICMS, both in terms of incidence on revenues and in the basis for calculating contribution credits.
“PIS/Cofins will not be calculated on ICMS and, coherently, the credits will not be computed in this way either”, said the Minister of Finance, Fernando Haddad.
PIS/Cofins credits
With the change, ICMS must be subtracted from operations. Check out what changes in practice according to the tax consultant and SEFAZMERIR partner, Juliana Maurília Martins.
“Until then, if the company makes purchases worth R$ 70,000, generating PIS and COFINS credits, and R$ 12,600 of ICMS are levied, this tax does not interfere in the basis for calculating the credit. Thus, we maintain the calculation base at 70 thousand, which results in a payable amount of R$ 912, referring to COFINS. The same reasoning also applies to the PIS”, explains the specialist.
With the change, this ICMS should not compose the calculation base, as shown in the example below.
“As of May 2023, the calculation base will not be on R$70,000, but on R$57,400 (70,000 – 12,600), because we will have to subtract this ICMS in the purchase operation in the calculation base of PIS credits and COFINS. In this example, it will result in R$ 1,869.60 to be paid in COFINS”, highlights the partner of the SEFAZMERIR school, which has courses aimed at professionals in the tax area.
The exclusion of ICMS from the calculation base for PIS/Cofins contribution credits will take effect from May 1, 2023. “Therefore, from March 1, 2023, it will be necessary to update this information in the systems”, warns the consultant .
The date of entry into force of the change considers the criteria of legal certainty and nonagesimal precedence (90-day period established in the Federal Constitution for the production of effects of the law that institutes or increases a social security contribution).
However, it is important to point out that despite going into effect on May 1, 2023, the MP must be converted into Law by June 1, 2023. If this is not done, the rule will lose its validity in the month following its validity, making taxpayers run the risk of having to apply it only between the period of May 1st and June 1st. However, if converted into law, it will be maintained and will be valid from May 1, 2023 onwards.