Chronic tax debtor: what changes for companies under the new federal regulation

The Brazilian Federal Revenue Service and the Office of the Attorney General of the National Treasury have issued Joint Ordinance No. 6/2026 (RFB/PGFN/MF), which regulates the classification of chronic tax debtors at the federal level, as provided for in Supplementary Law No. 225/2026.

According to the Brazilian Federal Revenue Service, notifications to taxpayers potentially subject to such classification — estimated at approximately 3,600 — are expected to begin later this month, marking the implementation phase of the debtor classification system.

A chronic tax debtor is defined as a taxpayer whose noncompliance is material, recurrent, and unjustified, evidencing a pattern of failure to meet tax obligations outside normal standards, based on the following criteria:

• outstanding tax liabilities of at least BRL 15 million, provided that they exceed 100% (one hundred percent) of the taxpayer’s known assets;
• tax liabilities outstanding for four consecutive periods or six non-consecutive periods within a 12-month timeframe, without justification.

It is also noteworthy that an individual with recognized tax liability, whether at the administrative or judicial level, who is associated with a legal entity classified as a chronic tax debtor, will likewise be considered a chronic tax debtor.

Classification as a chronic tax debtor is not automatic and requires a prior administrative proceeding. Such classification only occurs after a final administrative decision.

The proceeding begins with formal notice to the taxpayer, setting out the grounds for classification, the outstanding tax liabilities, and the relevant reference periods. As reported by the Brazilian Federal Revenue Service, these notices are expected to be sent shortly, and taxpayers are advised to pay close attention to official communication channels, including e-CAC. Once notified, the taxpayer will have 30 days to regularize its situation, demonstrate its financial capacity, or submit a defense.

In this context, prior preparation is essential to mitigate risks, particularly because failure to submit a defense will result in formal classification as a chronic tax debtor.

Among the main consequences of classification as a chronic tax debtor are the following:

• inactivation of the taxpayer registry (CNPJ), with a direct impact on operational regularity;
• restrictions on participation in public tenders and on entering into arrangements with public authorities;
• prohibition from benefiting from tax incentives;
• prohibition on the use of tax loss carryforwards (IRPJ) and negative CSLL tax bases to offset tax liabilities;
• prohibition on entering into tax settlement agreements; and
• ineligibility to file for judicial reorganization, which will be automatically converted into bankruptcy, among others.

In addition to these direct legal effects, there are also significant indirect impacts, such as restricted access to credit, increased reputational risk, and heightened scrutiny by stakeholders, among others.

There are controversial aspects in the legislation, particularly the consideration of tax liabilities under administrative dispute for purposes of characterizing chronic delinquency (a practice incompatible with the enforceability regime of tax credits), as well as the use of liabilities related to taxable events predating the regulation for such classification (in violation of the principle of non-retroactivity in tax law).

Currently, the system is in its initial implementation phase, which requires immediate preventive action. In light of the expected commencement of notifications, it is recommended that companies:

• conduct a comprehensive review of their tax liabilities, including an analysis of enforceability, and assess regularization strategies (such as installment plans and tax settlements);
• analyze their exposure to operational risks in the event of classification as a chronic tax debtor, particularly with respect to the inactivation of the CNPJ, among others.

The adoption of these measures in advance is essential to strengthen the protection of the company’s interests and to avoid the severe and adverse consequences of such classification.

The FAS tax team remains available to address any questions, assess your company’s risk exposure, and assist in defining risk mitigation, regularization, and defense strategies.