By Jéssica Heinzen Felisberto and Felipe Pinheiro Auge
On the eve of the parliamentary recess, the National Congress approved Complementary Bill (PLP) No. 128/2025, which introduces significant changes to the federal framework for granting tax incentives and benefits. The measure is considered urgent by the Federal Government, as it has a direct impact on the 2026 federal budget.
Reduction of benefits
PLP No. 128/2025 provides for the reduction of federal tax incentives and benefits related to PIS/Cofins, including on imports, Corporate Income Tax (IRPJ) and the Social Contribution on Net Profit (CSLL), the Excise Tax (IPI), the Import Tax, and the employer social security contribution.
The methodology for reducing incentives and benefits varies according to the nature of the benefit granted. Exemptions and zero-rate treatments will be replaced by the application of a percentage corresponding to 10% of the standard system tax rate. Benefits based on reduced rates, presumed or notional credits, reductions of the tax base, or reductions of the tax due will be partially reinstated, generally capped at 90% of the benefit originally granted.
The bill also establishes that the 10% increase in tax rates, in cases of exemptions or zero rates, does not, in itself, authorize the appropriation of tax credits by purchasers.
Impact on the Presumed Profit Regime
Particular attention should be given to the treatment of the Presumed Profit (Lucro Presumido) regime. The bill provides for a 10% increase in the deemed profit percentages applicable under this regime. By including the Presumed Profit regime among those subject to reduction, the bill explicitly treats it as a preferential regime in comparison with the standard tax system. For comparison purposes, PLP No. 128/2025 defines the standard system, for IRPJ and CSLL purposes, as taxation under the Actual Profit (Lucro Real) regime, without the application of any discounts or tax benefits.
The approved text provides that this increase will apply only to the portion of total gross revenue exceeding BRL 5 million in the calendar year, subject to proportionality by assessment period and by economic activity. This represents a relevant mitigation of the measure’s impact, especially for smaller companies that adopt this regime.
The treatment of the Presumed Profit regime is controversial and may give rise to litigation. The Federal Council of the Brazilian Bar Association (OAB) has already expressed its position, in an official letter addressed to the Chamber of Deputies, stating that the Presumed Profit regime does not constitute a tax benefit, but rather a legal method for calculating IRPJ and CSLL, established with the purpose of simplifying compliance with tax obligations and reducing compliance costs.
Exceptions to the reduction of benefits
The reduction of incentives does not apply to constitutional immunities; benefits granted to the Manaus Free Trade Zone and free trade areas; benefits related to the National Basic Food Basket; benefits granted for a fixed term subject to an onerous condition that has already been fulfilled; benefits granted to non-profit entities; as well as specific programs such as Minha Casa, Minha Vida and Prouni.
The rules on benefit reduction also do not apply to the Simples Nacional regime, the Social Security Contribution on Gross Revenue (CPRB), or incentives linked to industrial policy for the information technology, communications, and semiconductor sectors.
Changes to CSLL and JCP
The bill also introduces changes to the CSLL rates applicable to certain sectors, such as financial institutions, insurance companies, payment institutions, and capitalization companies, with staggered rates through 2027 and increases as of 2028.
With respect to withholding income tax on Interest on Equity (Juros sobre Capital Próprio – JCP), taxation will be levied at a rate of 17.5%, applied on the date of payment or credit to the beneficiary.
Entry into force
The rules regarding the reduction of tax incentives and certain specific changes will take effect as of the first day of the fourth month following publication, in compliance with the 90-day anteriority principle, while the remaining provisions will take effect as of January 1, 2026.
PLP No. 128/2025 will now be submitted for presidential sanction, whose constitutional deadline is fifteen business days from receipt of the bill by the President of the Republic. Given the relevance of the bill to the 2026 budget, it is possible that sanction will occur still this year.
Marins Bertoldi Advogados is closely monitoring developments on this matter, including the possible issuance of vetoes or secondary regulations, and remains available to assist companies that may be impacted by the new legislation.
