Brazil STF excludes PIS/Cofins on insurer technical reserves; R$5.3B fiscal hit

Brazil's Supreme Federal Court ruled 6-4 that income from insurers' technical reserve investments is not subject to PIS and Cofins contributions, a reversal of the tax authority's position. The government estimates a R$5.3 billion revenue loss in 2026, adding fiscal pressure amid ongoing budget concerns. The decision is final unless an appeal is filed, and its fiscal impact may influence future tax policy debates.