Chamber approves PL that increases revenue by R$ 16.8 billion in 2025; text goes to the Senate

The Chamber of Deputies approved this Thursday, 19th, by 340 votes in favor and 117 votes against, the bill that extends the deadline for financial institutions to deduct losses resulting from default in the IRPJ (Corporate Income Tax) calculation base ) and CSLL (Social Contribution on Net Profit). The measure will generate additional revenue of R$16.8 billion in 2025. The text now goes to the Senate for analysis.

The proposal is already in force through a provisional measure (MP) issued in October by the government. The additional revenue was not foreseen in the 2025 Budget Bill (PLOA), sent by the Executive to Congress in August. However, the PLOA’s sectoral revenue rapporteur, deputy Domingos Sávio (PL-MG), included the estimate in the budget piece, which still needs to be voted on by parliamentarians.

According to the text of the project approved today, banks will begin to deduct the stock of defaulted credit from the calculation basis of the two taxes in January 2026, no longer in January 2025, as previously foreseen. Without this deduction, the government will collect more.

The PL amends a 2022 law, which standardized the accounting and tax criteria for recording the deduction of losses due to default. Under this law, banks had 36 months (three years), starting in April 2025, to deduct the entire default stock from previous years. Now, they will have an increase in the grace period to start the deduction, which will be extended to January 2026, and an extension of the deduction period to 84 months (seven years), possibly reaching 120 months (10 years).

“Although this new approach brings a slower deduction system, it preserves the right to the benefit, so dear to the sector, and provides the necessary balance to public accounts, allowing collection to remain sustainable over time”, says the opinion of the author of the project, deputy José Guimarães (PT-CE).

As shown by the Estadão/Broadcastthis longer period for recognizing default will benefit banks because tax credits, in the financial sector, are considered “illiquid” assets, as there is no certainty about when they will be able to deduct these taxes. Therefore, the bank is required to make capital provisions to compensate for expected losses on defaulted loans.

The proposal will help banks because not all of them would have sufficient profits or tax base to make compensation within three years. If this period were to expire, the tax credit would be recorded on the balance sheet as a “tax loss”, which would require an even greater capital contribution.