LGPD Compliance and the Treatment of PIS/Cofins Credits under the Non-Cumulative Regime

an Analysis of STJ Themes 779 and 780 in the Telecommunications Industry

Abstract

The article analyzes whether the costs incurred by telecommunications companies to comply with the LGPD may be classified as inputs eligible for PIS/Cofins tax credits under the non-cumulative regime, in light of STJ Themes 779 and 780. Initially, the research examines the evolution of the contributions’ non-cumulativeness and the interpretative phases of the concept of “input”. Subsequently, it addresses the resolution of the controversy by the STJ in Themes 779 and 780, which established the criteria of essentiality or relevance as parameters defining what qualifies as an input. Finally, it applies the “subtraction test” to the telecommunications sector to assess whether data protection expenses are essential to the companies’ core activities. The study concludes that, although compliance with the LGPD is mandatory for telecommunications companies, only expenditures whose removal would directly compromise the provision of the service should be recognized as inputs eligible to generate PIS/Cofins credits.