According to the Federal Regional Court of the 1st Region it is possible to offset FUNRURAL credits against federal tax debts.
The legitimacy of the offsetting resulted from the judgment of the lawsuit filed by producers of the State of Minas Gerais who, as individuals, claimed the right to offset unduly paid FUNRURAL against Individual Income Tax (Imposto sobre a Renda das Pessoas Físicas - IRPF).
According to Reporting Justice Maria do Carmo Cardoso, social security debts could be offset against taxes not related to social security.
The FUNRURAL, established by Law n. 8.540/1992, consists of the Contribution to Fund Social Security and levies at a variable rate (2.3% to 2.85%) on the gross revenue of the sale of agricultural products.
In 2010, the STF acknowledged the unconstitutionality of Section 1, of Law n. 8.540/1992 in Extraordinary Appeal n. 596.177.
(Valor Econômico, Apr. 01, 2013, p. E1).