The 1st Panel of the Superior Court of Justice (STJ) has scheduled for November 12, 2025, the judgment of Repetitive Theme No. 1319/STJ, which will define whether it is possible to deduct Interest on Equity (JCP) calculated based on profits from fiscal years prior to the shareholder resolution approving its payment.

– What is at stake?
The core issue is determining the appropriate moment for JCP deduction for Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL) purposes.

While the Federal Revenue Service understands that the deduction is only valid in the same fiscal year in which the profit was generated (pursuant to IN RFB No. 1,700/2017 and COSIT Rulings No. 329/2014 and 45/2018), taxpayers argue that Article 9 of Law No. 9,249/1995 imposes no temporal limitation, requiring only accumulated profits or sufficient reserves to support the payment.

Currently, both Public Law Panels of the STJ have precedents favorable to taxpayers (REsp 1971537/SP and REsp 1946363/SP), ruling that the law does not require the deduction to be limited to the fiscal year of origin of the profit, as long as the JCP payment or credit has been duly approved.

– Impacts of Theme 1319/STJ
The decision should affect several ongoing cases and is economically relevant, given that such disputes commonly involve large, highly profitable publicly traded companies.

Additionally, the STJ ruling is expected to bring greater legal certainty, since the matter remains controversial within the Administrative Council of Tax Appeals (Carf), where decisions vary depending on panel composition and the application of the casting vote. It may also provide better predictability for corporate tax planning.

Given the scope and effects of the repetitive ruling — which may be modulated by the STJ — it is important that taxpayers who may be affected and do not yet have judicial measures in place evaluate the convenience of formalizing their position before the judgment, in order to safeguard their rights and mitigate potential risks arising from possible modulation.

Dupont Spiller Fadanelli Advogados is closely monitoring the matter and remains fully available to clarify any questions.