Normative Rule of the Federal Revenue of Brazil (“RFB IN”) no. 1,457 was published on Mar. 11, 2014, providing for the reimbursement and ex-officio offsetting of presumptive credits computed based on credits deriving from temporary differences from provisions for doubtful debts.

Pursuant to RFB IN, financial institutions and other institutions authorized to operate by the Central Bank of Brazil  may compute the presumptive credit when presenting, cumulatively (i) credits deriving from temporary differences from provisions for doubtful debts.

Pursuant to  RFB IN, financial institutions and other institutions authorized to operate by the Central Bank of Brazil  may compute the presumptive credit when presenting, cumulatively (i) credits deriving from temporary differences from provisions for doubtful debts ascertained in the previous calendar year; and (ii) tax losses also ascertained in the  previous calendar year.

After the credits have been computed, the taxpayer may request reimbursement, through the head office, which is to be preceded by an ex-officio offsetting against tax credits, whether recorded as collectible debt or not. In addition, the RFB IN created a fine of  30% on the reimbursed or offset amount in case of any misrepresentation of the presumptive credit request and determined that the discussion in administrative courts will be ruled by Law no. 9,784/99, which is the general Law of administrative proceedings.