Brazil: Compensação Tributária Descomplicada: Como Utilizar Créditos Fiscais com Segurança e Evitar Autuações

Tax compensation is one of the most powerful cash management tools available to a company, allowing tax credits to be transformed into payment of debts and alleviating pressure on working capital. However, as of September 2025, the improper use of this tool is also one of the main targets of the Brazilian Federal Revenue Service’s audits. This practical guide is designed for entrepreneurs and managers who want to take advantage of the benefits of compensation without falling into the traps of non-approval and heavy fines. Below, we will detail the process, risks, and best practices for compensating your taxes with full legal security.

Also read: how to use tax credits | PER/DCOMP | tax debt prescription | defense against tax assessments | TDPF from the Brazilian Federal Revenue Service

📅 Last verification and update: 08/10/2025

We will focus especially on procedures via PER/DCOMP and the essential precautions to avoid the dreaded non-approval, which is the main cause of fines and headaches for entrepreneurs in the digital audit era.

What is tax compensation?

Tax compensation is a mechanism that allows companies to use tax credits to settle debts with the tax authorities. These credits can arise from various situations, such as overpayments, negative balances of assessed taxes, or even tax incentives granted by the government. In practice, tax compensation transforms an asset, which are the credits, into a form of payment for liabilities, which are the taxes owed by the company. This tool is essential for the financial management of companies, allowing better cash flow control and reducing the need for financial disbursements.

By using tax compensation, companies can significantly reduce their tax costs and improve their liquidity. This occurs because, instead of disbursing financial resources to pay taxes, the company uses the credits it already has, saving money that can be used in other operational areas or investments. Additionally, tax compensation can help avoid the incidence of interest and fines on tax debts, provided these debts are settled within the deadlines established by law.

However, it is important to emphasize that tax compensation must be carried out in accordance with the rules and procedures established by the Brazilian Federal Revenue Service. Improper use of this tool can result in problems with the tax authorities, such as non-approval of the compensation and the imposition of heavy fines. Therefore, it is crucial for companies to be well-versed in the rules and procedures for the correct use of tax credits, ensuring safe and effective compensation.

Tax credits can boost the financial health of the company.

Where Do Tax Credits Come From? Understanding the Origin of Your Asset

💰 Opportunity: The century’s thesis on limiting contributions to the S System can generate significant credits for tax compensation.

Before using a credit, it is vital to understand its origin, as this determines the level of risk of the operation. Basically, the credits your company can use for compensation originate from two main sources:

• Credits from Overpayment or Excess Payment: This is the safest and most common source. They occur when your company, due to a calculation or classification error, pays more tax than it should. It also includes negative balances of IRPJ/CSLL assessed at the end of the year. These are clear and certain credits, with a low risk of questioning by the tax authorities.
• Credits Arising from Legal Actions: These are high-value credits, originating from tax theses where the Judiciary recognizes that a charge was unconstitutional or illegal (such as the “Century’s Thesis” – ICMS in the PIS/COFINS base). Although legitimate after the final judgment, their use via PER/DCOMP (Electronic Request for Restitution and Declaration of Compensation) requires a rigorous technical procedure for qualification and use, being a focus of attention for the Brazilian Federal Revenue Service.

Understanding tax credits

Tax credits are amounts that the company has in its favor, resulting from specific operations that generate the right to these credits. These amounts can be used to offset future tax debts, provided the rules established by law are respected. There are different types of tax credits, such as ICMS, PIS, COFINS, IPI credits, among others, each with its own particularities and conditions for use.

ICMS credits, for example, are generated in the purchase of goods or inputs used in production. When the company acquires goods for resale or inputs for manufacturing products, the ICMS levied on these operations generates credits that can be used to offset the ICMS due on future sales. PIS and COFINS credits, on the other hand, are obtained from the acquisition of goods and services used in the company’s activity, and can be deducted from the PIS and COFINS amounts due on sales.

To correctly understand and use tax credits, in-depth knowledge of tax legislation and the specific rules of each tax is necessary. Additionally, it is important for the company to maintain strict control over the tax documents that prove the generation of credits, such as purchase invoices and tax assessment reports. This control is essential to ensure the correct assessment of credits and avoid problems with audits.

Risk Alert 2025: Non-Approval and the Dreaded 50% Fine

If there is a disallowance of credits, learn how to make a defense against tax assessments to contest the assessment and preserve your credits.

To avoid fines from SPED, ECF, and DCTFWeb, ensure that the compensation is correctly declared in all ancillary obligations.

The greatest risk in tax compensation has a name: Non-Approval Decision Dispatch. This happens when, after you have already used the credit to pay your taxes, the Brazilian Federal Revenue Service analyzes your PER/DCOMP and concludes that the credit was undue. In September 2025, with audits cross-referencing data automatically, this analysis is more rigorous than ever.

The consequences are drastic:

1. The Debt “Resurrects”: The debt you considered paid is charged again, with Selic interest from the original due date.
2. Isolated Fine of 50%: The Revenue Service applies a fine of 50% on the value of the debt you attempted to compensate. In many cases, the fine becomes more expensive than the original tax itself.

The audit is especially focused on compensations based on third-party credits and on legal theses that have not yet been settled by higher courts. The message from the tax authorities in 2025 is clear: the responsibility for the veracity of the credit lies entirely with the taxpayer.

Documentary organization is key to proving credits.

⚠️ Attention: Credits can also suffer prescription if not used within the legal timeframe. Stay alert to deadlines to avoid losing your credits.

Advantages of tax compensation

Tax compensation offers several advantages for companies, with one of the main ones being the improvement of cash flow. By using tax credits to pay taxes, the company reduces the need for financial disbursements, which can be crucial for maintaining liquidity and financial planning. This resource saving allows the company to direct its investments to other areas, such as business expansion, acquisition of new equipment, or stock increase.

Another important advantage is the reduction of the tax burden. Tax compensation allows the company to make the most of the tax credits it has, reducing the total amount of taxes to be paid. This can result in significant savings over time, increasing the company’s competitiveness in the market. Furthermore, by avoiding the payment of taxes in cash, the company also avoids the incidence of interest and fines on tax debts, provided these debts are settled within the established deadlines.

Tax compensation also contributes to the company’s fiscal regularization. By using tax credits to pay due taxes, the company keeps its fiscal situation up to date, avoiding problems with the tax authorities and ensuring the issuance of negative debt certificates. These certificates are essential for participating in bids, obtaining financing, and carrying out various commercial operations. Therefore, tax compensation is a fundamental tool for the fiscal and financial management of companies.

Step-by-step to use tax credits

To use tax credits safely and effectively, it is necessary to follow some essential steps. The first step is the identification and assessment of tax credits. The company must verify which credits it has, how they were generated, and if they are properly documented. It is important to maintain strict control over the tax documents that prove the generation of credits, such as purchase invoices and tax assessment reports.

The second step is the verification of applicable legislation. Each type of tax credit has specific rules for its use, and it is crucial for the company to be aware of these rules. Tax legislation is complex and constantly changing, so it is important to have the support of a specialized professional or tax consultancy to ensure that credits are used in accordance with current legislation.

The third step is to submit the compensation request to the Brazilian Federal Revenue Service. This request can be made through the electronic system provided by the tax authorities, where the company informs the credits it wishes to use and the debts it wishes to compensate. It is important to fill in all the information correctly and attach the necessary documents to prove the credits. After submitting the request, the Brazilian Federal Revenue Service will analyze and approve the compensation. If everything is in order, the compensation will be approved and the debts settled.

Well-done compensation generates real tax savings.

Guide to Legislation on Tax Compensation: Essential Laws and Norms

Tax compensation is a strategic tool for cash management in any company, allowing the use of tax credits to settle debts. However, its application requires a deep understanding of the legislation to ensure the security of the operation.

In this guide, we detail the main norms that regulate the compensation of federal taxes in Brazil.

The Origin of Credits: The Starting Point for Secure Tax Compensation

Before using a credit, it is vital to understand its origin, as this determines the level of risk of the operation. The credits your company can use for compensation originate from three main sources:

1. Overpayment or Excess Payment: Occurs when the company pays a tax in an amount greater than due or makes a payment that was not its responsibility.
2. Negative Balance of IRPJ and CSLL: Assessed at the balance sheet closing, when the advances (monthly payments) exceed the total tax due for the year.
3. Reimbursement Credits: Originated from tax benefits or the tax assessment system itself. This is the case, for example, of non-cumulative IPI, PIS, and COFINS credits that are not fully utilized in the company’s operations and can be requested for reimbursement or used in compensation.

The Legal Basis: Law No. 9,430/1996

Law No. 9,430/1996 is the fundamental norm that establishes the general guidelines for tax compensation at the federal level. It defines essential conditions, such as:

• Compensation can only be carried out between taxes administered by the Brazilian Federal Revenue Service.
• The credits used must be legitimate, properly assessed, and registered in the tax authorities’ systems (via PER/DCOMP).

Technology facilitates the control and validation of tax credits.

Operational Rules: RFB Normative Instruction No. 2,055/2021

Here is a crucial point of attention: the former RFB Normative Instruction No. 1,717/2017 was expressly revoked. The current norm detailing operational procedures is RFB Normative Instruction No. 2,055/2021 (with its subsequent amendments).

This IN is the practical manual of the Brazilian Federal Revenue Service and establishes:

• Detailed rules for the preparation and transmission of the Compensation Declaration (DCOMP).
• Deadlines for analysis and approval (or non-approval) by the tax authorities.
• Penalties applicable in case of the use of undue credits, such as the isolated fine of 50% on the value of the improperly compensated debt.

How to avoid tax assessments

To avoid tax assessments when using tax credits, it is essential for companies to follow some recommended practices and maintain strict control over their fiscal operations. One of the main measures is the correct assessment and documentation of tax credits. The company must ensure that all credits used are properly proven through invoices, tax assessment reports, and other fiscal documents. Additionally, it is important for these documents to be organized and available for potential audits.

Another important measure is the constant updating of the company’s internal systems and procedures according to changes in tax legislation. Tax legislation is constantly evolving, and the rules for using tax credits can change at any time. Therefore, it is crucial for the company to always be aware of legislative changes and to have the support of specialized professionals to ensure the correct use of tax credits. This includes conducting periodic internal audits to verify the compliance of fiscal procedures.

Additionally, it is advisable for the company to invest in training and capacity building for its employees responsible for fiscal management. In-depth knowledge of tax legislation and tax compensation procedures is essential to avoid errors and ensure the correct use of tax credits. The company can promote courses, workshops, and specific training on the topic, as well as rely on specialized consultancies to guide its employees.

Professional guidance is essential to avoid assessments.

Tools and resources for managing tax credits

To ensure efficient management of tax credits, companies can rely on various tools and technological resources available in the market. One of the main resources is tax management software, which assists in the assessment, control, and use of tax credits. These systems automate much of the fiscal processes, reducing the possibility of errors and ensuring compliance with current legislation. Additionally, tax management software allows integration with other company systems, facilitating the control and organization of fiscal documents.

Another important tool is specialized tax consultants and advisors. These professionals have in-depth knowledge of tax legislation and can guide the company in the correct use of tax credits. Additionally, tax consultants can conduct periodic internal audits to verify the compliance of the company’s fiscal procedures and identify potential irregularities. Relying on the support of specialized consultants is an effective measure to avoid tax assessments and ensure the correct use of tax credits.

Moreover, the Brazilian Federal Revenue Service provides various resources and guidance on its official website, such as manuals, normative instructions, declaratory interpretative acts, and answers to frequently asked questions. This information is essential for the company to stay updated on the rules and procedures for using tax credits. It is advisable for those responsible for the company’s fiscal management to regularly access the Brazilian Federal Revenue Service’s website and follow the updates and guidance provided by the tax authorities.

Practical cases: Success in tax compensation

Several companies have successfully used tax credits for tax compensation, resulting in resource savings and improved financial management. A practical example is the case of a food industry that, after conducting an internal audit, identified several unutilized ICMS credits. With the support of a specialized consultancy, the company managed to organize the necessary documentation and carry out the compensation of these credits, resulting in a significant reduction in the ICMS amount payable.

Another success case is that of a technology company that, by investing in tax management software, automated much of the credit assessment and control processes. By using the software, the company was able to identify and utilize PIS and COFINS credits that were being underutilized, resulting in significant savings on taxes payable. Additionally, the software allowed for better organization and control of fiscal documents, facilitating the proof of credits to the Brazilian Federal Revenue Service.

A third example is that of a construction company that, by hiring a tax consultancy, managed to regularize its fiscal situation and avoid assessments. The consultancy conducted a detailed analysis of the company’s tax credits and identified several inconsistencies in the documentation. With the consultancy’s guidance, the company was able to correct these issues and use the credits correctly, ensuring the approval of the compensation by the Brazilian Federal Revenue Service and avoiding fines.

Technical analysis ensures security in the