Beginning April 2024, companies registered in Brazil’s Federal Technical Registry of Potentially Polluting Activities (CTF/APP) will begin to pay the Environmental Control and Inspection Fee (TCFA) under a new calculation methodology, different from that which has been in place since its creation by Federal Law No. 10,165/2000. In brief, the size of each branch/establishment of the registered company will be determined by the company's global annual gross revenue—as opposed to the methodology previously used, which considered the size of each branch individually.

The change in methodology is the result of a new understanding from IBAMA, as provided for in a December 2023 Legal Opinion   approved by Ordinance No. 260/2023. With the new system, there will be cases in which a branch previously considered small-sized will start paying the TCFA as if it were medium- or large-sized, therefore increasing the value owed.

The TCFA is provided for in Article 17-B of the National Environmental Policy Law (PNMA), and is owed to IBAMA by companies registered with the CTF/APP. Upon registration with the CTF/APP, the TCFA is charged quarterly, so that the first charge under the new methodology will occur in April 2024—covering the first quarter of 2024—due on the fifth business day of the month.

The change to a methodology that existed for more than two decades, based on a legal opinion approved by an ordinance, has the potential to generate litigation. Companies registered with the CTF/APP must be aware of the impacts of the new methodology when calculating their quarterly contributions, and should seek to evaluate possible opportunities to discuss the matter.

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