The recent judgment by the Superior Court of Justice (STJ) in Theme 1,319, combined with the taxation of dividends outlined in Bill No. 1,078/2025 (now Law 15.270/2025), sheds new light on the importance of interest on equity (JCP). Theme 1,319/STJ confirmed the possibility of deducting JCP from the calculation basis of Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL), including when calculated based on prior fiscal years of the corporate resolution authorizing its payment. The decision resolves an longstanding controversy between taxpayers and the Federal Revenue Service regarding the interpretation of Article 9 of Law 9,249/1995.
By that article, the calculation of JCP (interest on equity) for each fiscal year is carried out by applying the TJLP (Long-Term Interest Rate) on the equity determined as of January 1st of that year, and its actual payment or credit is limited to 50% of the higher value between the profit or the accumulated profits balance for the fiscal year in which they are deducted.
The deductibility of JCP is an important tool for tax planning, as it reduces the tax base for IRPJ (Corporate Income Tax) and CSLL (Social Contribution on Net Profit)—which together have an approximate rate of 34% under the Actual Profit regime—and its taxation under IRPF (Individual Income Tax) is relatively low, at a rate of 15%. It is worth mentioning that there is currently a movement by the federal government to increase the withholding tax rate to 20%, but this has not yet been approved.
On one hand, the limitation on the deductible amount in a given fiscal year is quite clear (up to 50% of the higher between the year's profit and the accumulated profits). On the other hand, the possibility of deducting JCP calculated and distributed based on previous fiscal years has generated intense debate. The Receita Federal (Federal Revenue Service) has always argued that deductibility would only be possible for JCP from the fiscal year in which its distribution is deliberated, due to the accrual basis applicable to companies under the Lucro Real (Actual Profit) regime—where revenues and expenses must be recognized in the period in which they are incurred, regardless of actual receipt or payment. In contrast, under the cash basis, applicable to individuals and optional for companies under Presumed Profit or Simples Nacional regimes, recognition occurs only when there is an actual inflow or outflow of resources.
Taxpayers, on the other hand, argue that the expense with JCP should be recognized at the moment of the corporate resolution, which is the act that creates the company's obligation to the partners, regardless of the fiscal year in which the JCP was calculated.
In light of this controversy, the Administrative Council of Tax Appeals(Carf) has oscillated between divergent positions, sometimes prohibiting retroactive deductions — as in Decisions 9101-003.814, dated October 2, 2018, and 9101-007.291, dated February 6, 2025 — and sometimes allowing them, as in Decision 1201-006.211, dated October 19, 2023.
However, the Superior Court of Justice (STJ) has recognized that Law 9,249/1995 does not impose a timing restriction on deductibility. In this regard, on November 12, 2025, during the judgment of Theme 1,319, the court established a binding precedent by affirming the following: “It is possible to deduct interest on own capital (JCP) from the calculation basis of IRPJ and CSLL when they are accrued in a fiscal year prior to the assembly decision authorizing their payment.” This decision reinforces the attractiveness of distributing JCP from the companies’ perspective, as it provides greater legal certainty for structuring such distributions to optimize the reduction of IRPJ and CSLL bases.
For individual partners, JCP has also gained an additional advantage with the approval of Law 15.270/2025. The approved text provides that dividends paid to individuals exceeding BRL 50,000 per month will be subject to withholding tax at a rate of 10%, thereby ending the exemption in place since 1996. In this scenario, JCP becomes even more relevant as a tax planning tool, as the overall tax burden — applicable to the company's profit and the remuneration of the partners — is likely to increase by 10% in the case of dividend distribution, making the JCP option more efficient.
When the partner is a legal entity subject to the Actual Profit regime, distributing JCP tends to be more advantageous in fiscal years when the entity incurs losses, as it avoids the incidence of IRPJ and CSLL. In this case, the advance income tax — through withholding at source — generates a Negative Balance credit that can be used for future offsets with other taxes administered by the Federal Revenue Service.
Regarding the receipt of JCP by legal entities, PIS and Cofins contributions also apply, both in the non-cumulative regime — with standard rates of 1.65% and 7.6%, respectively — and in the cumulative regime, when the company's social object or usual activities include participation in other companies (holding companies), with rates of 0.65% and 3%.
Finally, in the case of beneficiaries residing abroad, it is important to analyze the provisions of any applicable treaty to eliminate double taxation between Brazil and the destination country of the remittance, which may contain specific IRRF (withholding income tax) rates and mechanisms for crediting this tax against foreign tax authorities.
The STJ's decision in the judgment of Theme 1,319 is correct and reaffirms the supremacy of law over infralegal norms. By recognizing the deductibility of JCP regardless of the fiscal year in which it is calculated, the Court ensures predictability and legal certainty — essential elements for a healthy business environment.
It is worth noting that recently, JCP faced a period of intense uncertainty, but ultimately was maintained due to political pressures. Subsequently, Law 14,789/2023 introduced restrictive adjustments by redefining the accounts that make up equity for the purpose of calculating the distributable interest base.
Although these changes reduce deductibility for IRPJ and CSLL, JCP remains a useful mechanism for companies under the Actual Profit regime.
Together with the revocation of the dividend exemption, the STJ's decision opens up greater opportunities for using JCP as a tax planning instrument. Companies should strategically evaluate this tool, considering its fiscal impacts on both the legal entity and its partners.