The Evolution of the General Criteria for the Tax Deductibility of Expenses in Brazil and the Concretization of Objective Net Income Principle

Abstract

The article analyzes the implementation of the objective net income principle in Brazil, in the taxation of legal persons, historically examining the deductibility general clauses and the legislative choice for concretization of the causality principle in income tax. It begins with a discussion on the foundations of the concept of income, highlighting its variability according to legislation. It also compares the evolution of expense deduction criteria in Germany and the United States, showcasing influences on Brazilian legislation. Finally, it proposes a new interpretation of Articles 46 and 47 of Law No. 4,506/64, aiming to clarify controversies and improve the application of the principle.