
Associates Blog

Businesses on Alert for Changes to CADIN and Judicial Deposits: Understand What’s Changing
25 de dez de 2024
2 min read
By Ninfe Dantas and Carlos Renner, Tax Department

Law No. 14,973/24, published on September 16, 2024, introduced significant changes to the CADIN (Registry of Delinquent Credits) regarding registered debts and the timeline for inclusion, as well as to judicial deposits, which will now be updated using a new index. These changes have raised concerns among taxpayers, as the law mandates the immediate application of these provisions, leaving companies uncertain about the full scope of the new rules.
Changes to CADIN
• New debts eligible for registration:
Debts owed to autonomous government agencies and professional councils, irregularities with the FGTS, and active debts of states, the Federal District, and municipalities may now be included in CADIN, provided there is an agreement with the National Treasury Attorney General’s Office (PGFN).
• New timeline for CADIN registration:
Debts will be registered in CADIN within 30 days, significantly shorter than the current period of 75 days.
This accelerated timeline is particularly concerning for companies that rely on fiscal incentives and require the maintenance of fiscal compliance (CND) and the absence of debts in CADIN to retain their benefits.
Changes to Judicial Deposits
The law stipulates that judicial deposits made by taxpayers will now be updated based on an official monetary correction index reflecting inflation, rather than the SELIC rate.
This creates a discrepancy:
• Tax debts will continue to be updated by SELIC.
• Deposits, however, will use a potentially lower index than SELIC.
Key uncertainties remain, including:
• The treatment of judicial deposits already made.
• The method for updating future deposits in ongoing tax litigation.
Practical Implications
While awaiting clarification from the tax authorities, taxpayers should:
1. Reassess strategies for monitoring fiscal compliance to ensure regularity in CADIN and CND.
2. Review the use of judicial deposits in tax lawsuits to account for the potential financial impact of the new update index.
These changes demand immediate attention from companies, particularly those heavily reliant on fiscal incentives or involved in ongoing tax disputes. Proactive adjustments to fiscal management strategies will be essential to mitigate risks and ensure compliance under the new legal framework.