Brazil has established procedures for suspending PIS/Pasep and COFINS on domestic purchases and imports of petroleum used in fuel production, requiring refineries to provide declarations of intended use and repay the suspended contributions if the oil is used for other purposes.
Brazil’s tax authority, the Federal Revenue Service (RFB) announced that it has set the rules for a tax suspension on oil purchases on 6 November 2026. Complementary Law No. 192 of 11 March 2022 suspends PIS/Pasep and COFINS until 31 December 2022. Normative Instruction RFB No. 2,092 of 6 July 2022 puts that suspension into practice.
The suspension covers domestic sales of petroleum and imports of petroleum by refineries. It applies only when the oil is used to produce fuel.
Refineries that buy oil locally must give the seller a declaration of intended use before the sale. The instruction includes the template for this declaration in its Single Annex.
Refineries that import oil, including oil brought in for third parties, must state in the import declaration (DI or Duimp) what share of the cargo will go into fuel production. The description of the goods must state that the petroleum is imported for fuel production.
Refineries that do not use the oil as declared must repay the contributions they avoided paying.
