BACEN Resolution CMN N° 4.842

July 30, 2020 – Banco Central do Brasil issued the Resolution CMN N°4.842 which consolidates the general criteria for measuring and recognizing current and deferred tax assets and liabilities, by financial institutions and other institutions authorized to operate by Banco Central do Brasil.

Institutions should recognize:

I. Assets related to current recoverable taxes in future periods and any taxes paid that exceed the amount due in the period, to which the institution has the legal right to future compensation or refund, including presumed credits calculated based on credits arising temporary differences, according to the legislation in force; and

II. Liabilities the amounts of taxes due for the current period and previous periods.

This resolution also contains the chapters: deferred tax assets and liabilities, general provisions and final provisions.

Jurisdictions affected: Brazil

For more information, visit Banco Central do Brasil.

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