Complementary Law No. 224/2025 and the increase in taxes under the Presumed Profit regime.

Lei Complementar

A Complementary Law No. 224/2025, in effect since January 2026, reduced several tax incentives and benefits and introduced provisions that resulted in an increase of 10% on the presumed percentages of IRPJ and CSLL for legal entities opting for Presumed Profit, on the portion of annual gross revenue that exceeds the amount of R$ 5,000,000.00.

In addition, RFB Instruction No. 2,305/2025 established that the annual limit must be calculated proportionally for each quarter, so that if the value of R$1,250,000.00 is exceeded in a given quarter, the calculation basis with the increased presumption may also cover subsequent assessment periods of the same calendar year, even if at the end of the calendar year the taxpayer does not exceed the overall limit.

This provision could represent an effective increase in the tax burden, directly impacting cash flow starting on April 1, 2026.

Given this scenario, litigation on this issue is possible. Contrary to what Complementary Law 224/2025 states, Presumed Profit is not a tax benefit, but rather a simplified taxation and calculation technique for Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL). Therefore, changes to the presumed profit percentages should be accompanied by a demonstration of increased profit margins for companies, which was not done. Additionally, it is also possible to question violations of equality and contributory capacity, considering that taxpayers with the same annual revenue may, eventually, be subject to different tax burdens depending on how their income is distributed.

A Tax Law team Simões Ribeiro remains attentive to updates regarding Presumed Profit.

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