Brazil STJ Rules Against PIS/Cofins Credits on ICMS in Repetitive Appeals

Brazil's Superior Tribunal de Justiça (STJ) ruled that taxpayers cannot take PIS/Cofins credits on ICMS included in the purchase price of goods, a decision binding lower courts via repetitive appeals. This reverses prior taxpayer-friendly interpretations and increases the tax burden on companies, potentially affecting corporate cash flows and tax planning strategies. The ruling is final unless overturned by constitutional challenge.