Circular Letter No. 4071 - Creates and Alters Accounting Items in the National Financial System Accounting Plan for Tax Credit Recording and CGPE Operations

The Head of the Financial System Regulation Department (Denor), using the authority granted by Article 23, item I, subsection "a", of the Internal Regulations of the Central Bank of Brazil, attached to Ordinance No. 84,287 of February 27, 2015, based on item 4 of Circular No. 1,540 of October 6, 1989,

RESOLVES:

Art. 1. The following sub-items are created in the Accounting Plan of the Institutions of the National Financial System (Cosif), with UBDKIFJELMNZ attributes:

I - 1.8.8.25.30-1 Tax Credits – MP 992;

II - 3.0.9.50.15-1 CGPE – Company with Gross Revenue up to R$100 Million;

III - 3.0.9.50.25-4 CGPE – Company with Gross Revenue between R$100 Million and R$300 Million; and

IV - 3.0.9.50.35-7 CGPE – Eligible Programs.

§ 1. In the sub-item 1.8.8.25.30-1 Tax Credits – MP 992, mentioned in item I of the main text, the tax credits referred to in § 4 of Art. 3 of Provisional Measure No. 992 of July 16, 2020, must be recorded.

§ 2. In the sub-items 3.0.9.50.15-1 CGPE – Company with Gross Revenue up to R$100 Million, 3.0.9.50.25-4 CGPE – Company with Gross Revenue between R$100 Million and R$300 Million, and 3.0.9.50.35-7 CGPE – Eligible Programs, mentioned in items II to IV of the main text, credit operations contracted under the Corporate Working Capital Preservation Program (CGPE), whose credit has been effectively released, including those acquired in assignment with retention of substantial risks and benefits, must be recorded, according to the size of the company and the program to which the operations are related.

Art. 2. The following are altered in Cosif:

I - the function of item 1.8.8.52.00-6 PRESUMED CREDIT LAW 12.838/2013, which will now be to record the values of presumed credits calculated in accordance with current legislation; and

II - the nomenclature of item 1.8.8.52.00-6 PRESUMED CREDIT LAW 12.838/2013, which will now be PRESUMED CREDIT.

Art. 3. The following accounting sub-items are excluded from Cosif:

I - 1.8.8.25.10-5 Tax Credits – Circular 2.746 – Realization after 5 Years; and

II - 1.8.8.25.20-8 Tax Credits – Circular 2.746 – Realization up to 5 Years.

§ 1. The balances existing in the accounts excluded according to the main text must be reclassified to the adequate accounting sub-item of item 1.8.8.25.00-2 TAX AND CONTRIBUTION TAX CREDITS.

§ 2. The institution must maintain in an internal-use sub-item, in a segregated manner, the values of tax credits constituted during the validity of Circular No. 2.746 of March 20, 1997, with realization expected up to five years and after five years.

Art. 4. The provisions of this Circular Letter apply to accounting documents prepared from the August 2020 reference date.

Art. 5. This Circular Letter enters into force on August 1, 2020.

João André Calvino Marques Pereira