Rio de Janeiro updates FOT framework and calculation rules

On December 23, 2025, the State of Rio de Janeiro published State Law No. 11,071/2025, which amends Law No. 8,645/2019, the law that established the Temporary Budget Fund (FOT).

The legislation introduces significant changes and, as a general rule, raises the FOT rate from 10% to 20%, with the aim of indirectly reducing ICMS tax benefits and increasing state revenue.

The FOT is a mechanism of the State of Rio de Janeiro that requires companies benefiting from ICMS tax incentives to deposit 10% of the tax differential, in order to balance public finances. Deemed constitutional by the Federal Supreme Court (STF) (Theme 1,386), the FOT is set to remain in effect until December 31, 2032.

On March 24, 2026, State Decree No. 50,248/2026 was published in the Official Gazette of the State of Rio de Janeiro, regulating the amendments introduced by Law No. 11,071/2025 to State Law No. 8,645/2019, redefining the contribution framework for the FOT.

Subsequently, on March 25, the State Secretariat of Finance published SEFAZ Resolution No. 876/2026, which details the digital tax bookkeeping procedures related to FOT deposits in the EFD ICMS/IPI.

The new rules take effect as of April 1, 2026.

New classification of tax benefits and FOT calculation methodology

The main change introduced by Decree No. 50,248/2026 is the replacement of the previous FOT calculation model—based on a single percentage applied on a global basis—with a segmented methodology that requires the monthly segregation of ICMS tax relief according to the nature of each tax benefit enjoyed.

Under this new framework, the taxpayer must identify and classify each tax benefit enjoyed on a monthly basis, according to its nature, in order to then apply the corresponding percentage.

In practice, the following percentages now apply to ICMS tax incentives:

1. Non-onerous tax benefits: The rate will be increased from 10% to 20%, effective for tax periods beginning in April 2026, while maintaining the progressive escalation schedule provided for in the legislation, as follows:

• 25% as of January 1, 2027;
• 27% as of January 1, 2028;
• 30% as of January 1, 2029;
• 40% as of January 1, 2030;
• 50% as of January 1, 2031; and
• 60% as of January 1, 2032.

2. Onerous tax benefits (granted for a fixed term and conditional upon the fulfillment of counterpart obligations, pursuant to Article 385 of Supplementary Law No. 214/2025): The rate will be adjusted from 10% to 18.18%, restoring proportionality relative to the full ICMS rate, also effective as of April 2026.

Furthermore, Decree No. 50,248/2026 introduced Article 2-A to Decree No. 47,057/2020, containing essential definitions for the application of the new framework, among which the following stand out:

• Onerous benefit: A benefit granted for a fixed term and conditional upon the fulfillment of legal or contractual counterpart obligations that impose effective burdens or restrictions on the beneficiary's activities, pursuant to Supplementary Law No. 214/2025.
• Fixed term: The period established for the enjoyment of the onerous benefit, subject to the maximum limit of December 31, 2032.
• Condition: The counterpart obligations required of the benefit holder that result in effective burdens or restrictions, such as job creation, increased revenue or tax collection, sales price limitations, supplier restrictions, investments in R&D, workforce qualification, or the implementation/expansion of an economic enterprise linked to industrialization or value-added processes.
• Negative delimitations: Counterpart obligations that constitute mere compliance with legal duties applicable to all taxpayers, a mere declaration of intent without effective burden, or a contribution to a state fund linked to the enjoyment of the benefit do not qualify as conditions—unless all of the fund's resources are allocated to public infrastructure works or projects that promote private sector economic activity, provided the fund was established by May 31, 2023.

For the application of the reduced rate of 18.18%, the Decree expressly places on the taxpayer the burden of proving the onerous nature of the benefit, requiring the declaration of the formal granting act in the tax bookkeeping records.

In addition, Decree No. 50,248/2026 expressly sets the FOT's validity through December 31, 2032, decoupling it from the term of the Fiscal Recovery Regime (RRF).

Certain benefits remain excluded from the progressive escalation schedule and retain their specific rules, such as those provided for under State Laws No. 6,979/2015, No. 8,960/2020, No. 10,335/2024, and No. 9,162/2020, as well as State Decrees No. 35,418/2004 and No. 44,629/2014, and the transactions referenced in item I of Article 4 of State Decree No. 45,607/2016.

• SEFAZ Resolution No. 876/2026

Additionally, on March 24, 2026, the State Secretariat of Finance published SEFAZ Resolution No. 876/2026, which details the digital tax bookkeeping procedures related to FOT deposits in the EFD ICMS/IPI. The main changes are as follows:

1. Update of Article 2 of Annex XXIII, Part II, of SEFAZ Resolution No. 720/2014, to expressly reference the new FOT calculation methodology introduced by Decree No. 50,248/2026.

2. Guidance on completing EFD records: (i) Record E111, with the code "RJ050019 – Special debits – Amount corresponding to the FOT-related percentage" and the amount to be deposited; (ii) Record E112, identifying the administrative act granting the tax benefit enjoyed by the taxpayer; and (iii) Record E113, with the data of the related tax documents;

3. Inclusion of Section 2-A in Article 2 of Annex XXIII, Part II, of SEFAZ Resolution No. 720/2014, to provide that taxpayers covered by a court order (preliminary injunction, precautionary measure, or anticipatory relief) suspending the enforceability of the FOT shall follow the specific procedures set forth in Articles 2 and 3 of Annex XXV of SEFAZ Resolution No. 720/2014, with applicable ancillary tax obligations being preserved.

We therefore emphasize the importance of immediate attention to the tax periods beginning in April 2026, when the new FOT rate will effectively impact the amounts to be collected.

For more information regarding this Legal Update, please contact our Tax team at: TaxpartnersTC@mayerbrown.com.