The concept of a habitual debtor has taken on new dimensions in Brazilian legislation with the publication of... Complementary Law No. 225, of January 8, 2026, which establishes the Taxpayer Defense Code, regulated by Joint Ordinance RFB/PGFN No. 6/2026. The rule establishes a structured set of rules for identifying and dealing with taxpayers whose tax behavior is characterized by substantial, repeated, and unjustified tax delinquency.
When a taxpayer is considered a habitual debtor.
At the federal level, default will be considered:
- substantial: when the taxpayer accumulates tax credits in an irregular situation — registered as outstanding debt or established and not paid — of a value equal to or greater than R$ 15 million and that represent more than 100% of their known assets;
- repeated: when there is maintenance of tax credits in an irregular situation in at least four consecutive assessment periods or in six alternating periods, within a period of 12 months;
- unjustifiedWhen there are no objective justifications capable of preventing the default.
State, district, and municipal legislation may provide for different values to characterize substantial default.
In addition, it will also be considered habitual debtor The taxpayer who is a related party to a legal entity that has been dissolved or declared inactive in the last five years, provided that there are tax credits in an irregular situation of an amount equal to or greater than R$ 15 million or a link with a person already qualified as a habitual debtor.
Taxpayer guarantees
The framing as habitual debtor It does not happen automatically. The legislation ensures the taxpayer:
- prior notification;
- 30-day period for settling debts;
- possibility of presenting a defense with suspensive effect;
- demonstration of sufficient assets to cover obligations.
Consequences for the habitual debtor
The consequences for the taxpayer classified as habitual debtor They are severe and can be applied cumulatively, including:
- Disqualification from participating in bidding processes and contracting with public authorities;
- Prohibition on the enjoyment of tax benefits, including remission and amnesty;
- impediment to filing for judicial reorganization;
- Restriction on the use of tax losses and negative CSLL (Social Contribution on Net Income) bases for tax settlement;
- Prohibition of tax settlements, among other measures.
Advertising and registration effects
Qualification as habitual debtor This could be included in the taxpayer's CNPJ (Brazilian tax ID), with their data being disclosed through the Federal Revenue Service channels and in CADIN (National Registry of Defaulting Taxpayers), amplifying the reputational and operational impacts.
Impacts for businesses and tax management
Given these changes, it is crucial that companies and managers closely monitor their tax situation. Adopting tax compliance practices and seeking timely settlement of debts are essential measures to mitigate risks and avoid the penalties foreseen in the new regulations.
A team The Tax Law department at Simões Ribeiro is highly specialized and closely monitors legislative changes.
