Resolution CMN No. 3059 — Accounting Registration of Tax Credits of Financial Institutions

RESOLUTION NO. 003059

Provides for the accounting registration of tax credits of financial institutions and other institutions authorized to operate by the Central Bank of Brazil.

THE CENTRAL BANK OF BRAZIL, in accordance with Article 9 of Law 4,595 of December 31, 1964, makes public that the MONETARY COUNCIL NATIONAL, in a session held on December 19, 2002, considering the provisions of Articles 4, items VIII, XI, and XII, of the aforementioned law, and Article 20, § 1, of Law 4,864 of November 29, 1965, in Law 6,099 of September 12, 1974, amended by Law 7,132 of October 26, 1983, and in Article 7 of Decree-Law 2,291 of November 21, 1986,

RESOLVES:

Article 1. Establish that financial institutions and other institutions authorized to operate by the Central Bank of Brazil may only perform the accounting registration of tax credits resulting from fiscal loss of income tax, negative base of social contribution on net profit, and those resulting from temporary differences when meeting, cumulatively, the following conditions:

I - present a history of profits or taxable revenues for purposes of income tax and social contribution, as applicable, proven by the occurrence of these situations in at least three of the last five social years, a period that must include the year in reference;

II - there is an expectation of generation of future profits or taxable revenues for purposes of income tax and social contribution, as applicable, in subsequent periods, based on a technical study that demonstrates the probability of occurrence of future obligations with taxes and contributions that allow the realization of the tax credit within a maximum period of five years.

§ 1. The provisions of this article must be observed individually by institution.

§ 2. The registration of tax credits must be accompanied by the registration of deferred tax obligations, when existing, observed also that when provided for in tax legislation, having compatibility of periods in the forecast of realization and exigibility, the active and passive values regarding tax credits and obligations must be offset.

§ 3. Temporary differences are characterized as expenses appropriated in the year and not yet deductible for purposes of income tax and social contribution, but whose future exclusions or compensations, for purposes of calculating real profit, are explicitly established or authorized by tax legislation.

§ 4. The provisions of item I do not apply to newly constituted institutions or those that had a change in shareholding control, whose history of losses is due to their previous phase.

§ 5. The provisions of item II, regarding the realization period of tax credits, do not apply to tax credits originating from fiscal losses caused by the exclusion of revenues from the supervenience of depreciation of assets subject to leasing operations, up to the limit of the corresponding deferred tax obligations.

Article 2. Tax credits registered until the entry into force of this resolution, including those resulting from social contribution on net profit relative to assessment periods closed until December 31, 1998, calculated in accordance with Article 8 of Provisional Measure 1,858-6 of June 29, 1999 (current Provisional Measure 2,158-35 of August 24, 2001), whose expectation of realization is greater than five years, must be excluded for purposes of calculating Level I of the Reference Capital (PR) referred to in Article 1 of Resolution 2,837 of May 30, 2001.

Sole Paragraph. The provisions of this article do not apply to tax credits originating from fiscal losses caused by the exclusion of revenues from the supervenience of depreciation of assets subject to leasing operations, up to the limit of the corresponding deferred tax obligations.

Article 3. For purposes of the exclusion provided in Article 2, the following schedule must be observed:

I - from January 1, 2004, exclusion of 20% (twenty percent) of tax credits realizable in a period greater than five years;

II - from January 1, 2005, exclusion of 40% (forty percent) of tax credits realizable in a period greater than five years;

III - from January 1, 2006, exclusion of 60% (sixty percent) of tax credits realizable in a period greater than five years;

IV - from January 1, 2007, exclusion of 80% (eighty percent) of tax credits realizable in a period greater than five years;

V - from January 1, 2008, exclusion of 100% (one hundred percent) of tax credits realizable in a period greater than five years.

Article 4. The total amount of tax credits existing on the reference date, except those subject to the adjustment provided in Article 2, must correspond, at most, to 40% (forty percent) of Level I of PR after the exclusion provided in that article.

§ 1. The excess value must be fully deducted from Level I of PR referred to in Article 1 of Resolution 2,837 of 2001.

§ 2. The provisions of this article do not apply to tax credits originating from fiscal losses caused by the exclusion of revenues from the supervenience of depreciation of assets subject to leasing operations, up to the limit of the corresponding deferred tax obligations.

Article 5. The probability of realization of tax credits must be carefully evaluated at least during the preparation of semi-annual and annual balance sheets, and the corresponding portion of the asset must be written off obligatorily when at least one of the following situations is verified:

I - the conditions established in Article 1 are not met;

II - the values actually realized in two consecutive periods are less than 50% (fifty percent) of the values predicted for the same period in the technical study mentioned in Article 1, item II;

III - there are doubts regarding the operational continuity of the institution.

§ 1. The write-off criterion resulting from a realization period greater than five years, provided in Article 1, item II, and the provisions of item II of this article do not apply to tax credits constituted prior to the entry into force of this resolution, including those originating from social contribution on net profit relative to assessment periods closed until December 31, 1998, calculated in accordance with Article 8 of Provisional Measure 1,858-6 of 1999.

§ 2. The provisions of items I and II of this article do not apply to tax credits originating from fiscal losses caused by the exclusion of revenues from the supervenience of depreciation of assets subject to leasing operations, up to the limit of the corresponding deferred tax obligations.

Article 6. The independent auditor, when issuing their opinion on the financial statements, must express themselves regarding the adequacy of the procedures for the constitution and maintenance of tax credits and deferred tax obligations, when relevant, including with respect to the premises used for the preparation and semi-annual review of the technical study that justifies its realization.

Article 7. If impropriety or inconsistency is found in the procedures for recognition, accounting registration, and evaluation of tax credits, especially regarding the premises for their realization, the Central Bank of Brazil may determine their write-off, with the consequent recognition of the effects in the financial statements.

Article 8. The Central Bank of Brazil is authorized to issue norms and adopt measures deemed necessary for the execution of the provisions of this resolution.

Article 9. This resolution enters into force on the date of its publication, except for the provisions of Article 4, whose validity is from January 1, 2008.

Brasília, December 20, 2002.

Arminio Fraga Neto
President