The Federal Supreme Court (STF) has postponed the announcement of the outcome of the Direct Action of Unconstitutionality (ADI) 4395 to June 25. The legality of charging the contribution to the Rural Workers Assistance Fund (Funrural) in sales transactions made by rural producers to companies, a process known as subrogation, is being discussed.

We recall that the trial began in 2020 and was resumed in 2022, when the majority of Supreme Court Justices indicated the constitutionality of the charge. The interpretation ruled out the authorization for the subrogation of the individual rural employer’s contribution on gross revenue from the sale of his production, as provided for in Law 10.256/01, in the absence of new legislation on the subject, or subsequent laws, in the absence of new legislation on the subject.

However, the trial has been adjourned so that the result can be announced in person. Thus, the STF’s decision will have a considerable impact on rural producers and agro-industries, since it will define the guidelines for the contribution in this context.

The Tax Law Department at Marins Bertoldi Advogados is closely following the developments in this matter and is available to answer any questions on the subject, as well as to deepen the analysis within each business reality.

Therefore, it is important for those interested to be aware of the implications of this decision and seek specialized advice to adapt their tax practices and strategies in accordance with the understanding to be established by the Supreme Court.

By Enrique Grimberg Kohane