Federal taxation should not be levied on state tax benefits.

A recent court decision has recognized taxpayers' right not to pay tax on ICMS tax benefits. This is due to the application of a law that changed the rules for taxing tax incentives for investments granted by states.



It is only through court rulings that taxpayers are able to prevent the collection of income tax (IRPJ) and CSLL, as well as PIS and Cofins, on the grounds that the federal government cannot tax an incentive granted by the state.



The Federal Revenue Office, however, maintained its position that it could not tax incentives that stimulated the expansion of the economic enterprise. If your company receives a state tax incentive and is still being taxed by the federal government, look for specialized lawyers to ensure that you find the right way to stop paying this tax unduly.