TRF-3 Reduces Taxation on Interest on Equity (JCP) Received by Companies
A recent decision by the Federal Regional Court of the 3rd Region (TRF-3) marked a significant development in the ongoing debate over the taxation of Interest on Equity (Juros sobre o Capital Próprio – JCP) under the presumed profit regime (lucro presumido). The court held that a company whose main business activity consists of asset management, investments, and equity holdings may apply the 32% rate to JCP income, treating such amounts as part of its gross operating revenue.
Operating Revenue and the Presumed Profit Regime
According to the 6th Panel of the TRF-3, JCP income arising from the company’s core business activities should be classified as operating revenue. This classification allows taxation based on the presumed profit percentages, as opposed to the traditional position adopted by the Federal Revenue Service (Receita Federal), which treats such income as ancillary financial revenue subject to full taxation.
This interpretation aligns with recent decisions from the Superior Court of Justice (Superior Tribunal de Justiça – STJ), which have expanded the concept of gross revenue to include all financial inflows directly linked to a company’s business activities.
Impact on Companies and Potential Tax Recovery
The decision is particularly relevant for companies engaged in asset management and holding activities, which often receive JCP as a return on their investments. According to our partner Diego Miguita, from the tax practice, this constitutes an important precedent that may support claims for tax compensation or refund of overpaid amounts — situations in which taxpayers have remitted sums exceeding those legally due.
Under this new interpretation, companies that previously followed the Federal Revenue Service’s more restrictive view may reassess their tax burden for the past five years and seek recovery of unduly paid amounts, either through administrative or judicial means.
This ruling enhances legal certainty for taxpayers and underscores the importance of regular tax reviews, particularly in cases involving revenues derived from complex corporate structures.
