By Augusto Chimborski and Guilherme Santil Felix da Silva
The 1st Section of the Federal Regional Court of the 4th Region (TRF4) unanimously admitted Incident for the Resolution of Repetitive Claims (IRDR) No. 5011077-58.2026.4.04.0000, which will address the validity of the 10% increase in the presumed profit margins used to calculate Corporate Income Tax (IRPJ) and the Social Contribution on Net Profit (CSLL), introduced by Supplementary Law No. 224/2025.
Understanding the Controversy
Supplementary Law No. 224/2025 was enacted with the stated purpose of reducing federal tax incentives and benefits. To that end, Article 4 included, among the reduction measures, a 10% increase in the presumed profit margins under the presumed profit tax regime, applicable only to the portion of annual gross revenue exceeding BRL 5 million.
Taxpayers argue that the presumed profit regime does not constitute a tax benefit or incentive, but rather a statutory method for determining the taxable base for IRPJ and CSLL. From this perspective, increasing the presumed profit margins would not amount to a reduction of a tax benefit, but rather to an effective increase in the tax burden through an expansion of the taxable base.
What Is an IRDR?
The IRDR is a procedural mechanism established by the Brazilian Code of Civil Procedure to resolve legal controversies that arise repeatedly in multiple cases and where conflicting decisions may jeopardize equal treatment and legal certainty.
Once the incident is admitted, the matter is referred to the 1st Section of the TRF4, the judicial body responsible for adjudicating the incident, which will establish a legal precedent to be applied to other cases involving the same legal issue.
What Will the TRF4 Decide?
The issue referred for resolution under Repetitive Claims Theme No. 38 is as follows:
“The issue concerns the validity of the 10% increase in the presumed profit margins used to determine the taxable bases for IRPJ and CSLL, applicable to the portion of total annual gross revenue exceeding BRL 5,000,000.00, introduced by Article 4, paragraph 4, item VII, and paragraph 5 of Supplementary Law No. 224/2025.”
In this specific case, the TRF4 established a particular procedure for pending cases:
(i) At the trial court level, proceedings will continue until they are ready for judgment, at which point they will be stayed;
(ii) At the TRF4 level, appeals involving the matter will be stayed, including interlocutory appeals, appeals from final judgments, and mandatory reviews.
The legal precedent to be established by the TRF4 must be observed in the adjudication of cases involving the same legal issue within its jurisdiction, thereby reducing the current divergence among judicial bodies.
Impacts on Taxpayers
The referral of the matter to IRDR proceedings represents a significant development for companies subject to the presumed profit tax regime within the jurisdiction of the 4th Region, particularly because it consolidates the resolution of the legal controversy into a single proceeding, promoting greater legal certainty and equal treatment within the tax system.
For taxpayers already challenging the application of Supplementary Law No. 224/2025 before the courts, developments in the IRDR proceedings should be closely monitored, given their potential effects on the progress of pending cases and on the future application of the legal precedent to be established.
The Tax Department of Marins Bertoldi Advogados is closely monitoring developments on this matter and remains available to address any questions.
