The Brazilian Federal Revenue (‘RFB’) issued COSIT Ruling No. 45/20 to authorize PIS/COFINS credits over expenses incurred with employees’ transportation and meal. Although the Ruling was filed by an association of companies that act in cleaning, servicing, and maintenance, the RFB adopted some assumptions that, in our view, could be applied to companies of other sectors.
In a nutshell, the Ruling indicates that Art. 3, item X of Law 10833, only allows the record of PIS/COFINS credits to the cleaning, servicing, and maintenance companies on the expenses effectively incurred with the acquisition of transportation and meal tickets/vouchers.