In an interview to Valor Econômico newspaper, our partner Ana Cláudia Utumi talked about the Provisional Measure (MP) No. 1171, sanctioned last week, which leaves out possible past losses.
According to the article, the MP allows the deduction from the profits of the controlled company abroad the losses calculated in a balance sheet by the controlled company itself, but only as of the effective date of the provisional measure and prior to the date the profits were calculated. In other words, it is possible to discount from the profits of the calculation for 2025 the losses of 2024, but the previous losses will be discarded.
For Ana, preventing the use of losses from previous years breaks the concept of income as an equity increase. For now, the lawyer’s suggestion has been to wait for the final text to be defined, since the rules will only come into effect in 2024.