Brazil’s Federal Revenue Service and Attorney General’s Office have introduced a settlement programme for disputes over withholding tax on capital gains earned by non-resident investors, offering graduated discounts of up to 65% and instalment options through December 2026.
Brazil’s tax authority, the Federal Revenue Service (RFB) and the Attorney General’s Office for the National Treasury (PGFN) have released the Joint Transaction Notice PGFN/RFB No. 4/2026 on 4 September 2026, establishing a settlement framework for tax liabilities tied to withholding income tax (IRRF) disputes on capital gains earned by non-resident investors in Brazil.
The program accommodates debts currently under administrative or judicial review, regardless of whether they appear on the outstanding tax registry.
Eligible participants and scope
Taxpayers facing disputes over withholding tax on non-resident investor income qualify for enrollment, provided an administrative or judicial proceeding remains pending without final judgment as of the application date. Associated penalties, including qualified fines, receive the same discount treatment as the principal obligation.
Registration deadline and settlement structure
Enrollment closes at 7 PM Brasília time on 29 December 2026. The authorities permit debt settlement through instalment plans with graduated discounts:
- Up to 13 instalments: 65% discount
- Up to 25 instalments: 55% discount
- Up to 37 instalments: 45% discount
- Up to 49 instalments: 35% discount
- Up to 61 instalments: 25% discount
Participants may also apply corporate income tax loss carryforwards and negative social contribution on net profit (CSLL) bases to cover up to 30% of remaining balances following discount application. Debts arising under RFB Ordinance No. 568/2025 receive distinct discount conditions.
Registration and binding implications
Enrollees register through the Federal Revenue Service Portal (e-CAC) for RFB-managed debts or via the PGFN’s REGULARIZE Portal for outstanding federal tax debts. Participation constitutes irrevocable acknowledgement of included liabilities, withdrawal of all administrative appeals and legal arguments, and termination of any corresponding court actions. No refunds or compensation apply to previously paid amounts.
