CARF Decision on GILRAT and the Predominant CNAE: Understand What Changes (or Doesn’t) for Your Company

In the case at hand, an airline was assessed for applying a 1% rate (low-risk level), while, according to the predominant CNAE reported in the GFIP (CNAE 51.11-1/00 – regular passenger air transport), the correct rate would be 3% (high-risk level). The company argued that a Technical Report on Workplace Environmental Conditions (LTCAT) indicated low risk in its operations. However, the LTCAT is used to determine the need for Special Retirement benefits and is not related to determining the RAT rate.

The tax authorities and CARF were unequivocal: the GILRAT rate must be determined according to the predominant economic activity reported (CNAE) and its legally defined risk level, regardless of any environmental reports.

What can we learn from this decision?

• The determination of the predominant CNAE must be based on the establishment’s predominant activity, as defined by law, according to the activity that employs the largest number of covered employees and casual workers;

• The LTCAT is essential for assessing the additional Special Retirement contribution, but it cannot be used to reduce the base GILRAT rate;

• It is crucial to properly analyze which activity employs the most workers in each establishment and, based on that, identify the corresponding predominant CNAE.

  And what does this mean for those seeking tax opportunities related to the predominant CNAE?

  At Infis Consultoria, our work goes beyond simply accepting the CNAE already on record. We conduct a thorough analysis of employee roles, registration data, and other business information to determine, in light of the legislation and the criteria established by the INSS/RFB, the correct predominant CNAE for each establishment and period, since this assessment can be performed on a monthly basis.

  With this approach, we help our clients correct any inconsistencies in their registration and, when possible and properly supported, apply more favorable RAT rates (always in full compliance with the regulations and based on our best technical judgment). As a result, we are not affected by decisions of this kind, since all our work is carried out in an analytical, sustainable, and technically robust manner.

  Having doubts about the predominant CNAE can be costly. Count on us to assess all possible scenarios.

  Prevention is always the best path.