How to Record the Reversal of CBS/IBS Credit When Write-Off a Fixed Asset?

01. Objetives

To calculate the proportional amount of IBS/CBS credit reversal in cases of write-off, disposal, or loss of fixed assets, according to the criteria defined by Complementary Law LC 214/2025, art. 47, §§6º to 8º.

The calculation takes into account:

• The useful life of the asset (depreciation rate).
• The usage period up to the posting-off date.
• The percentage of the asset posting off (in the case of partial write-off).

02. IBS/CBS Credit Reversal Calculation

2.1 Formula used en the Standard Entries (LP 810)

CTBVLTRIB(SN1->N1_IDTRIB,"IBSEST",,.T.)*SN4->N4_QUANTD*(1-((SN4->N4_DATA-SN1->N1_AQUISIC)/((100/SN3->N3_TXDEPR1)*365))) 

2.2 Component Description

2.3 Calculation Logic

The credit reversal consists of two proportions:

1 - Proportion of the quantity written off:
Represents the fraction of the asset being written off at that moment.

Example: N4_QUANTD = 0,4 → The asset is being written off at 40%.

2 - Proportion of the remaining credit:
Indicates how much of the credit has not yet been “consumed” through depreciation (useful life).

It is calculated as:
1 - (usage time / total useful life)

Thus, the older the asset, the smaller the remaining credit to be reversed.

2.4 Calculation Steps

1 - Determine the total credit amount of the asset:

CTBVLTRIB(SN1→N1_IDTRIB,"IBSEST",,.T.)

2 - Apply the write-off percentage:

Multiply the total credit by the fractional value in N4_QUANTD

(ex.: 40% = 0,4 → 40% of the credit).

3 - Apply the usage time factor (depreciation):

Calculate how much of the credit still “remains,” considering the asset’s useful life.

4 - Final result:

2.4 Practical example

Calculation:

1 - Total useful life:

100 ÷ 25 = 4 years = 1,460 days 

2 - Time in use:

01/01/2025 − 01/01/2023 =730 days

3 - Remaining proportion:

1 − (730 ÷ 1460) = 0,5

4 - Applying the formula:

1,000 × 0.4 × 0.5 = 200

Reversal value = R$ 200.00

Practical interpretation

• If the asset was still at the beginning of its useful life, the reversal amount will be higher, since the credit has not yet been “consumed” through depreciation.
• If the asset was nearing the end of its useful life, the reversal amount will be lower, since most of the credit has already been used.
• When an asset is partially posting off, the system considers only the fraction (N4_QUANTD) related to the write-off.

03. Formula explained step by step (calculation order)

The idea is to calculate from right to left, respecting mathematical precedence:

1️⃣ Inner parentheses first
2️⃣ Multiplication and divisions
3️⃣ Subtractions and additions

Step 1 – Calculate the asset’s total useful life (in years, then in days)

Formula excerpt:

(100 / SN3->N3_TXDEPR1) * 365

Substituting:

(100 / 25) * 365

→ 4 × 365 = 1,460 days of total useful life

Step 2 – Calculate the asset’s use time (in days)

Formula excerpt:

N4_DATA - SN1->N1_AQUISIC

→ 2025-01-01 - 2023-01-01 = 730 days

Step 3 – Calculate the percentage of useful life already used

Formula excerpt:

((N4_DATA - SN1->N1_AQUISIC) / ((100 / SN3->N3_TXDEPR1) * 365))

Substituting:

730 / 1460 = 0,5

→ The asset has already used 50% of its useful life.

Step 4 – Calculate the remaining credit percentage

Formula excerpt:

1 - (previous result)

Substituting:

1 - 0,5 = 0,5

→ 50% of the credit remains (remaining proportion).

Step 5 – Apply the write-off percentage (quantity written off)

Formula excerpt:

N4_QUANTD * (previous result)

Substituting:

0,4 * 0,5 = 0,2

→ The total to be reversed equals 20% of the total credit.

Step 6 – Apply to the IBS credit value

Formula excerpt:

CTBVLTRIB(...) * (previous result)

Substituting:

1.000 * 0,2 = 200

Final reversal value = R$ 200,00

Summary of the sequence with calculation order

Practical interpretation

🔹 The asset has R$ 1,000 in credit.
🔹 You are writing off 40% of it.
🔹 The asset has used half of its useful life (2 of 4 years).
🔹 Therefore, 50% of the credit is still available.
🔹 40% × 50% = 20% of the total → R$ 200 reversal.

04. Related Documents

• How to Account for IBS, CBS, and IS?
• Accounting Based on Tax Classification
• Accounting Based on Tax Classification