Brazilian IRPJ in Lucro Real regime and mileage deduction: how to structure in 2026
Lucro Real companies face specific rules to deduct mileage reimbursement. The 2026 guide.
Lucro Real and deductibility
Lucro Real is the regime for companies with annual revenue above BRL 78M, or by election. IRPJ + CSLL start from accounting profit, adjusted for statutory additions/exclusions. A deductible expense must be necessary, usual, documented, and booked in the right competence period.
Mileage reimbursement clears all four when there's a written policy, a logbook, and bank payment. The traps are operational.
Trap 1: deduction vs add-back
Is the recipient a registered employee, an MEI/PJ provider, or a managing partner (sócio-administrador)? Different sections of the RIR govern each. The most common SME mistake: mixing per-km reimbursement with managing-partner withdrawals, triggering disguised-distribution autuação.
Trap 2: PIS/Cofins credits
Under the non-cumulative PIS (1.65%) / Cofins (7.6%) regime, input credits depend on essentiality. Logistics and transport companies generally credit; pure commercial sales force generally don't; service companies are case-by-case. Conservative practice: credit only with clear essentiality; provision for litigated cases.
Trap 3: INSS
Lei 8.212/91 §9.h excludes travel diárias from the contribution base if they don't exceed 50% of monthly remuneration. Per-km reimbursement that is variable, documented per trip, and within 50% of remuneration is excluded. Above 50%, the excess enters the base (per CARF jurisprudence).
Tax reform impact
LC 214/2025 phases in IBS + CBS between 2026 and 2033. IRPJ unchanged through 2027. From 2028, CBS replaces PIS/Cofins with a broader essentiality-based credit concept — likely more favorable for mileage reimbursement input credits.
Recommended policy stack
1. Separate payroll line for mileage reimbursement. 2. Mandatory logbook per trip. 3. Manager approval within 7 days. 4. Bank payment separate from salary. 5. Quarterly internal variability audit. 6. Digital archive with integrity hash, 5-year retention. 7. Documented PIS/Cofins position; conservative credit-taking.