Taxation for Direct Credit Companies (DCS)

Taxation for Direct Credit Companies (DCS)

The General Coordination of Taxation (COSIT) recently published an important clarification on the tax rules applicable to Direct Credit Companies (SCD).

Through Answer to Advance Tax Ruling Request No. 50/2024, which is binding on the tax authorities, COSIT recognized that SCDs can opt for taxation under the presumptive regime, waiving the obligation to adopt the real profit regime. This decision was motivated by a question from an SCD, which raised doubts about the need to adopt the real profit regime, considering the provisions of article 14, item II, of Law No. 9,718/1998.

At the time, the agency clarified that the aforementioned legal provision does not cover all financial institutions in a generic way, restricting the obligation to make a real profit only to those financial institutions expressly mentioned. This interpretation gives legal certainty to SCDs, which play an important role in the financial market by facilitating access to credit in a simplified way and with more attractive interest rates.

The possibility of opting for the presumed regime brings significant benefits for these institutions, allowing them to manage their taxes more efficiently and in line with their operational characteristics. Thus, given the clarification in question, market players have greater legal certainty to assess possible tax efficiency in changing the tax regime applicable to SCDs.

BTLAW, through its Tax Consultancy division, has a team prepared and experienced to provide additional information on this subject. For more details, please contact us([email protected]).