The foreign profit tax discussion has been restarted at the STF

STF's rapporteur minister André Mendonça filed a request to bring the tax debate to the physical plenary, thereby nullifying the tie of six votes against the tax. Previously, a majority of six votes in favor of implementing the tax had formed, which would have imposed tax liability. A new release date has not yet been set, and the process will be determined according to whether President Edson Fachin is available on the calendar. The matter had been on the virtual agenda until Friday, August 28, and only Fachin's vote was missing.

Ministers supporting the tax application under Gilmar Mendes' leadership — Moraes, Nunes Marques, Zanin, Dino, and Carmen Lucia — considered the tax constitutional and argued that international agreements do not apply in this case. Mendonça and Luiz Fux, on the other hand, argued that abolishing the tax could eliminate the effects of Article 7 of the OECD model treaty and could burden businesses based on prior legal arrangements. Dias Toffoli also voted against the tax, but noted that the tax application is valid for a subsidiary in Bermuda, since there is no tax treaty with that country. The case's focus is the Brazilian mining company Vale, which is seeking to remove the tax burden on the profits of its subsidiaries in Belgium, Denmark, and Luxembourg; Brazil has double taxation avoidance agreements with those countries. The government estimated the tax loss risk at 22 billion reais, while some sources suggest the figure could rise to 32 billion reais.