The Second Panel of the Superior Court of Justice (STJ), in the trial of Special Appeal no. 1.432.952/PR, found unanimously that the PIS and COFINS Contributions are charged on interest and adjustment for inflation arising from the real estate sale agreements. 

According to the appealing taxpayers, the charge of the mentioned taxes on interest and adjustment for inflation deriving from real estate sale agreements is illegal, since such amounts do not integrate the business purposes of the companies, meaning they are financial revenues and not sales revenues. All taxpayers of the judicial action were engaged in real estate, whether as builders, administrators, venturers, or equity share companies.

However, the Second Panel, resorting to the position made by the First Section of the STJ, affirmed that the  revenues arising from such activities as building, disposing, purchasing, leasing, selling real estate and intermediating real estate business integrate the concept of sales revenues for purposes of PIS and COFINS taxation. Even the lease of properties integrating the fixed assets of companies in the real estate field is subject to taxation.

Therefore, taking into account that the financial revenues from adjustments for inflation and interest refer to amounts of the very real estate sale agreements entered into during the exercise of corporate activities of companies involved in the claim, such amounts follow the destination of the principal, that is, they are subject to the charge of the mentioned taxes.