Brazilian Courts Differ in Opinion on Constitutionality of Increase of PIS/COFINS on Financial Income

On 30 August 2016, the 7th Panel of the Federal Court of the First Region issued a decision concerning the legality of the reinstatement of the levy of the Program for Social Integration contribution (PIS) and Contribution for the Financing of Social Security (COFINS) on financial income ({News-2015-04-07/A/5- previous coverage}). Under Decree No. 8426/2015, the rates were increased from 0% to a combined rate of 4.65% effective 1 July 2015 (0.65% for PIS and 4% for COFINS).

According to the…