Compliance

Planning Around Brazil’s ‘Devedor Contumaz’ Regime: How to Stay Compliant

The new 'Devedor Contumaz' criteria under Lei Complementar 225/2026 impose severe restrictions on companies with substantial, repeated tax debt — here’s how to ensure you’re not caught off-guard.

By NomadicTax Research Team • 6 min read • August 17, 2026

## What is the Devedor Contumaz Regime? Instituted by **Lei Complementar 225/2026** (the Código de Defesa do Contribuinte), the Devedor Contumaz regime targets legal entities with a history of **substancial**, **reiterated**, and **injustified** tax delinquency. ([gov.br](https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/devedor-contumaz/devedor-contumaz?utm_source=openai)) In practical terms, a company may be declared Devedor Contumaz if: - Its unpaid federal tax credits amount to **at least R$ 15 million** and exceed 100% of its known patrimony (for entities under the federal sphere). ([gov.br](https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/devedor-contumaz/devedor-contumaz?utm_source=openai)) - The debts persist over **four consecutive** or **six non-consecutive periods** within 12 months. ([gov.br](https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/devedor-contumaz/devedor-contumaz?utm_source=openai)) - There’s no valid justification — for example, non-fraudulent financial distress or recognized calamity — to explain the delinquency. ([gov.br](https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/devedor-contumaz/devedor-contumaz?utm_source=openai)) ## What Are the Consequences? Once officially qualified, an entity faces harsh sanctions: loss of tax benefits, inability to participate in public contracts or tenders, suspension in public administration operations, and altered procedures in tax litigation. ([gov.br](https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/devedor-contumaz/devedor-contumaz?utm_source=openai)) Moreover, as of **Portaria RFB 702/2026**, all voluntary appeals submitted by definitively qualified Devedores Contumazes must be judged by the **Delegacia de Julgamento Recursal da RFB (DRJ-R)**, **regardless of the dispute amount**. This removes the option to appeal through CARF for these companies. ([gov.br](https://www.gov.br/fazenda/pt-br/assuntos/noticias/2026/julho/receita-federal-ajusta-regras-do-contencioso-administrativo-para-devedores-contumazes?utm_source=openai)) ## Who’s Already Been Designated? By late July 2026, 22 companies had been officially added to the public list of Devedores Contumazes. Many operate in high-tax industries like tobacco and fuel. These names are published by the Receita Federal under the relevant service. ([gov.br](https://www.gov.br/fazenda/pt-br/assuntos/noticias/2026/julho/receita-federal-publica-novos-atos-declaratorios-e-amplia-lista-de-devedores-contumazes?utm_source=openai)) ## How to Stay Below the Threshold: Practical Strategies Here are steps companies and their advisors should take to avoid falling under Devedor Contumaz: | Action | Why It Matters | |---|---| | Institute strong debt tracking | Know what taxes are due and when. Even sporadic or small debts could add up to a ‘reiterated’ pattern. | | Ensure regular reconciliations of patrimony | Patrimony values feed into the threshold test — undervaluing or failing to report may trigger issues. | | Avoid ignoring notifications | The process is started via administrative notification, which gives **30 days** to regularize or contest. Missing this window can make findings final. ([gov.br](https://www.gov.br/fazenda/pt-br/assuntos/noticias/2026/julho/receita-federal-publica-novos-atos-declaratorios-e-amplia-lista-de-devedores-contumazes?utm_source=openai)) | | Negotiate arrears proactively | Using transação tributária or parcelamento agreements can stop a case before formal qualification. | | Maintain clean corporate governance | Cases of fraud, interposition of persons, or related-party issues are red flags in LC 225. ([gov.br](https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/devedor-contumaz/devedor-contumaz?utm_source=openai)) | ## What to Do If You’re Already in Danger If notified as a potential Devedor Contumaz: - **Act immediately** — within the 30-day notice period, either regularize by paying, entering negotiations, or present a defense with suspensive effect. ([gov.br](https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/devedor-contumaz/devedor-contumaz?utm_source=openai)) - Gather evidence of external or justified causes — e.g., adverse economic results, natural disasters, or hardship — but ensure documentation and consistency. | - Monitor related companies in your group — being related to an inactive or ‘inapt’ company with large unresolved liabilities can lead to qualification under LC 225. ([gov.br](https://www.gov.br/receitafederal/pt-br/acesso-a-informacao/acoes-e-programas/programas-e-atividades/devedor-contumaz/devedor-contumaz?utm_source=openai)) | ## TL;DR Summary Brazil’s latest taxpayer protection code has flipped the switch on certain businesses: if you have big unpaid tax debt that sticks around, you could be officially labeled a Devedor Contumaz — with all the negative consequences that come with it. Being proactive on compliance, financial reporting, notifications, and potentially negotiating arrears are now more important than ever.