Tax Diagnosis of PIS and COFINS Credits

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The Tax Diagnosis of PIS and COFINS Credits is an essential practice for companies that wish to be efficient in collecting taxes and remain competitive in the market, when it comes to cost reduction and cash flow optimization.

This work directly seeks to promote the correct formation of a credit base for contributions to reduce the balance payable or even to refund the credit balance, when the credit base is greater than the debit base.

Tax Diagnosis of PIS and COFINS Credits: Non-Cumulative Systematics
In the context of credits on inputs in the non-cumulative gambling data south africa system, the legislation governing PIS and COFINS itself serves as the first guideline for verifying the possibility of taking credits.  

Among them, credits on inputs used directly in the production of goods or in the provision of services, such as electricity, rent, storage and transportation, and others, stand out.

The other inputs, in turn, are analyzed based on the activities carried out by the company, taking into account sub-legal standards such as normative instructions, opinions and consultation solutions, in addition to administrative and judicial jurisprudence, related to the principle of non-cumulativeness within the scope of PIS and Cofins contributions.  

Let us look, for example, at Cosit Opinion No. 05/2018 , which guides the issue expressed by the STJ (see REsp 1,221,170/PR):

“[…] the concept of input for the purposes of calculating credits for the non-cumulative nature of the PIS/Pasep Contribution and Cofins must be assessed in light of the criteria of essentiality or relevance of the good or service for the production of goods intended for sale or for the provision of services by the legal entity.”

The judgment of REsp 1,221,170 itself was an important milestone for this conceptualization of inputs and must be taken into consideration for the Fiscal Diagnosis of these contributions.

In addition, the publication of Normative Instruction 2121 of 2022 stands out, which brought together concepts from several scattered standards and brought important changes regarding the definition of inputs for the purposes of using PIS and COFINS credits.