Monetary variations should be part of corporate gross income, says STJ

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Monetary variations calculated based on the National Civil Construction Index (INCC) relating to property purchase and sale contracts in installments must be classified as gross operating revenue for the purposes of composing the Corporate Income Tax (IRPJ) calculation base. and not as financial income. This was understood by the First Panel of the Superior Court of Justice at the beginning of September.


According to the ruling, the ministers understood that the aforementioned installments represent the actual construction cost of the property, which is why they must form part of the gross revenue actually received by the legal entity.

In the vote, the rapporteur, minister B2B Lead Gurgel de Faria, explained that the INCC is used to correct the value of the property subject to financing while the work is being carried out and, therefore, the respective portion does not have the nature of a monetary variation of the credit right. .

“It is a fact that the incidence of this index implies an increase in the value of the installments paid, but such increase is not related to the remuneration or monetary correction of the credit agreed between the parties, but rather to the variation in the construction cost of the property sold by the author” , he said.

According to the minister, it can therefore be concluded that "the value alluding to such update makes up the price as agreed in the purchase and sale contract, which is why it is correct to understand that, as it is an amount actually received from the sale of the real estate unit, even if in installments, must be included in the gross revenue of the legal entity”.

The minister also warned that it is clear that the portion resulting from the INCC cannot be classified as financial income, subject to separate taxation. “But rather as an integral part of the gross revenue arising from the sale of the property, making it possible to add it to the basis for calculating the presumed profit for income tax purposes”, he highlighted.



In the original action, the National Treasury alleged that there was a violation of article 9 of Law no. 9,718/1998, the law that amends the Federal Tax Legislation, as it understands that the amounts received as monetary correction by the INCC, incident to purchase and sale contracts of real estate units, cannot be included in the concept of gross revenue.