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ARTICLE · 08 APRIL 2026

Rio De Janeiro Updates FOT Framework And Calculation Rules

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On December 23, 2025, the State of Rio de Janeiro published State Law No. 11,071/2025, which amends Law No. 8,645/2019, the law that established the Temporary Budget Fund (FOT).

BrazilTax
Carolina Bottino
Carolina Bottino
Diana Castro
Diana Castro
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On December 23, 2025, the State of Rio de Janeiro published State Law No. 11,071/2025, which amends Law No. 8,645/2019, the law that established the Temporary Budget Fund (FOT).

The legislation introduces significant changes and, as a general rule, raises the FOT rate from 10% to 20%, with the aim of indirectly reducing ICMS tax benefits and increasing state revenue.

The FOT is a mechanism of the State of Rio de Janeiro that requires companies benefiting from ICMS tax incentives to deposit 10% of the tax differential, in order to balance public finances. Deemed constitutional by the Federal Supreme Court (STF) (Theme 1,386), the FOT is set to remain in effect until December 31, 2032.

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