In a recent ruling, the 4th Federal Civil Court of Brazil’s Federal District has granted an injunction ensuring the continuation of tax incentives under PERSE* (Emergency Program for the Recovery of the Events Sector) for bars and restaurants until 2027. This measure prevents the Federal Government from suspending the benefits before the 60-month period established by Law No. 14.148/2021 (Case No. 1027337-87.2025.4.01.3400).

The writ of mandamus** was filed by Abrasel-DF (Brazilian Association of Bars and Restaurants – Federal District Chapter), arguing the need to maintain legal and financial security for establishments affected by the pandemic. With the granted injunction, the original federal tax exemptions remain valid, including IRPJ (Corporate Income Tax), CSLL (Social Contribution on Net Profit), PIS (Social Integration Program), and COFINS (Social Security Financing Contribution).

Following the same understanding, the Federal Court of Rio de Janeiro (JFRJ) also granted an injunction to a taxpayer in Rio de Janeiro State, ensuring zero tax rates for the aforementioned federal taxes under the emergency program. The court recognized that the early revocation of the tax benefit would violate the principle of legal certainty and Article 178 of the Brazilian Tax Code (Case No. 5028922-20.2025.4.02.5101).

These precedents represent significant relief for the food service and events sector, particularly amid recent discussions about reducing PERSE’s scope or duration. While the Federal Government may still appeal, the current decisions ensure, for now, tax stability for the affected taxpayers.

Consequently, these measures directly impact the sustainability of thousands of small and medium-sized entrepreneurs, reinforcing economic predictability and job preservation in the sector.

*Note: PERSE was created in Brazil in 2021 as a response to the severe economic impact of COVID-19 pandemic restrictions on the events and food service sectors, providing tax relief to help businesses recover.

**Note: A writ of mandamus (Mandado de Segurança) is a legal instrument in Brazilian law used to protect clear and perfect rights threatened or violated by public authorities.