A new regulation issued by Brazil’s Federal Revenue (Instrução Normativa RFB No. 2.264/2024) introduces significant changes in the way PIS and Cofins contributions are calculated under the non-cumulative regime. While the measure is part of the broader transition to the future CBS tax system created by Brazil’s tax reform, one noteworthy provision directly benefits law firms—especially those taxed under the presumed profit or actual profit regimes.
What Changed?
The new rule clarifies how companies can calculate presumed credits for PIS and Cofins when purchasing goods or services used as inputs. These credits help offset the contributions owed on gross revenues. Among the sectors expressly listed as eligible for such credits in the regulation’s annex is legal services—a development that may come as a surprise, as law firms have historically been excluded from many tax benefits.
Why It Matters for Law Firms
Article 6, §1, item II of the new regulation explicitly recognizes the activity code “69.11-7/01 – Legal Services,” as per Brazil’s official CNAE classification. This means law firms that operate as legal entities and are properly registered under this CNAE code can now calculate a presumed tax credit based on a fixed percentage of their gross revenue.
In practice, this results in a lower effective tax burden, reducing the amount of PIS and Cofins owed each month without the need to link credits to specific input purchases—a welcome simplification and financial relief for professional services firms.
Who Qualifies?
Only firms officially registered under the correct CNAE code (69.11-7/01) and subject to the non-cumulative PIS/Cofins regime are eligible. These firms must also maintain full accounting records and meet all formal requirements for claiming credits. Solo practitioners or lawyers operating as individuals are not included in this benefit.
Practical Impacts
For law firms organized as partnerships or corporations, this change represents a long-overdue correction to Brazil’s tax asymmetries. Traditionally, professional service providers—especially lawyers—were excluded from tax regimes that allowed credit mechanisms available to other sectors.
This new credit framework allows legal businesses to reduce their tax liability in a structured, compliant manner. It also opens doors for smarter tax planning strategies that can improve cash flow and long-term sustainability.
Steps Law Firms Should Consider
To take full advantage of this new rule, law firms should:
- Confirm their CNAE registration is accurate and aligned with 69.11-7/01;
- Reevaluate whether the cumulative or non-cumulative tax regime offers the best outcome;
- Ensure proper accounting systems and tax records are in place to support credit claims;
- Review their corporate structure, especially if the firm is growing, to assess if a change could improve tax efficiency.
Conclusion
This development reflects a meaningful shift toward a fairer tax environment for intellectual service providers in Brazil. By allowing law firms to benefit from presumed PIS and Cofins credits, the Brazilian tax authority acknowledges the economic relevance of the legal sector and helps level the playing field for service-based businesses.
That said, the rule’s application depends on formal compliance—so accountants and tax lawyers will play a crucial role in making sure firms are eligible and fully aligned with the new framework. As Brazil’s tax system continues to evolve, this is a clear step toward modernization and fairness.