Actual Profit is the regime where IRPJ and CSLL are levied on the effective profit determined by the accounting books (with tax additions and exclusions). It is mandatory for companies with revenue above BRL 78M or in specific activities (financial, factoring, investment). It allows broad use of deductible expenses, the offsetting of tax losses from prior years and INE (Interest on Net Equity).
Taxation under Actual Profit
IRPJ + CSLL
- IRPJ: 15% on actual profit + a 10% surtax on the amount exceeding BRL 240k/year (BRL 20k/month)
- CSLL: 9% on actual profit (general activities) or 15% (financial institutions)
- Typical combined burden: 34% on actual profit
Non-cumulative PIS/COFINS
- PIS: 1.65% on revenue
- COFINS: 7.6% on revenue
- Combined burden: 9.25%, with the right to a credit on creditable inputs
ICMS, ISS, IPI
Determined separately according to the operation, with no specific Actual Profit regime.
Tax additions and exclusions
The accounting profit must be adjusted to arrive at the actual profit (the IRPJ/CSLL base). The main adjustments:
Typical additions (increase taxable profit)
- Non-deductible expenses (tax penalties, partners’ personal expenses)
- Non-deductible provisions (doubtful debtors above the limit, contingent liabilities)
- Reversal of previously deducted provisions
- INE received (the payer deducts it, the recipient adds it back)
Typical exclusions (reduce taxable profit)
- Profits and dividends received from other companies (included in the books but excluded for tax purposes)
- Reversal of previously added provisions
- Investment subsidy (under the Law 14.789/2024 regime — specific rules)
- Positive equity-method result (in some cases)
Offsetting of tax losses
Companies under Actual Profit may offset tax losses from prior years against the actual profit of the current year. But there is a limitation:
- 30% cap: a maximum offset of 30% of the current year’s actual profit (Law 9.065/95 art. 15)
- The residual loss continues to be offset in subsequent years (with no statute of limitations)
- In mergers and spin-offs, there are specific continuity rules
The unconstitutionality thesis on the 30% cap
The cap was challenged before the STF (RE 591.340 — Theme 117), but the Court held it constitutional. It nonetheless remains a strategic thesis in specific cases.
INE — Interest on Net Equity
A mechanism provided for in Law 9.249/95 art. 9. It allows a company to distribute to its partners interest calculated on net equity, with specific tax characteristics:
- Deductible from the IRPJ/CSLL base of the paying company
- Taxable through withholding income tax (15%) at source for the receiving partner
Typical tax advantage
The company pays 34% (IRPJ+CSLL) on profit. If it distributes the amount as INE, it deducts it from the base — saving 34%. The partner pays 15% withholding income tax — the 19-percentage-point difference is the gross saving.
Limits: INE is capped at the TJLP × Net Equity, and at half of the profit of the year or of accumulated profits. Law 14.789/2024 changed several rules — a specific analysis is recommended.
Amortizable goodwill
In operations acquiring a company (or an interest), the goodwill paid above the book value generates a specific tax benefit under Actual Profit. After Law 12.973/2014 + Law 14.789/2024, the rules changed substantially:
- Goodwill with an economic basis in future profitability — may be amortized over at least 5 years, generating a deduction for IRPJ/CSLL
- Goodwill with an economic basis in specific assets — follows the asset’s amortization rule (depreciation, depletion)
- Internal goodwill — with no economic basis, non-deductible
Correct goodwill structuring in M&A can generate substantial tax savings — case by case.
Actual Profit optimization — free diagnostic
An analysis of your company’s Actual Profit determination, identification of optimization opportunities (INE, tax loss, goodwill, deductibility) and an estimate of the saving.
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