Wednesday last week (July 3), the Brazilian Supreme Court Justice Cármen Lúcia released for inclusion in the line of judgements of the court, one of the more relevant trials on the Brazil tax arena, which will have impacts in all trials of this same kind currently in Brazilian courts (the so called general repercussion), pertaining the exclusion of the Brazilian States’ VAT-type Tax (ICMS) from the calculation basis of the Federal Taxes on Revenues (PIS/COFINS). In this regard, the Supreme Court has already decided favorably to the taxpayers on March 2017, providing that the ICMS should not be comprised in PIS/COFINS calculation basis. Since then, the taxpayers have been waiting with great anxiety what is called the modulation of the effects of such decision: that is, as from which moment the taxpayers will be able to calculate referred taxes without the ICMS in its calculation. In this sense, we have noted significant movement from companies in recent months, so as for them to be prepared to the effects of the modulation, which main lines considered so far are as follows: (i) retroactive effect to any company that had already been discussing such subject in courts; (ii) effects retroactive to the March 17 decision to all taxpayers; (iii) effects as from the judgement of the modulation (this latter thesis is supported by the Brazilian Federal Revenue General Attorneys – PGFN – under the argument of the relevant impact that a retroactive modulation would have in the federal budget). In any of the hypotheses (including other modulation decisions that can be taken by the Supreme Court), taxpayers shall be ready since now to adequate their tax systems/calculations to this new environment, through actions that can comprise the confirmation of the figure of potentially available credits (for those companies which have already been in courts and/or believe in retroactive effects), or the adjustment of the bases for the taxpayers that intend to implement the new methodology as from the STF decision. PFM has a team specialized in identifying such credits through electronic tools, which the objective of tax consistency and the adequate report in accessory obligations (tax filings; potential amendments are likely to be required in many cases). We are at the disposal of your company to discuss the subject in further detail.