Cosan S.A. (CSAN3) reported that, in the context of Raízen S.A.’s out-of-court reorganization proceeding in 2026, an individual tax settlement agreement was formalized with the Office of the Attorney General of the National Treasury and the Brazilian Federal Revenue Service, covering approximately R$ 3.2 billion in Raízen’s federal tax contingencies under Cosan’s economic responsibility.
Of this amount, around R$ 2.9 billion, net of judicial deposit balances, was eligible for a 63% discount, resulting in a balance of approximately R$ 1.1 billion after the discount. To settle this balance, approximately R$ 870 million in tax credits from tax loss carryforwards and negative CSLL (Social Contribution on Net Profit) bases made available by Cosan to Raízen will be used, with the remaining amount of around R$ 200 million to be paid in cash, in addition to the conversion of the judicial deposits into revenue for the government.
According to the company, the transaction will allow it to reduce approximately R$ 3.2 billion in federal tax contingencies under its economic responsibility, of which R$ 3.0 billion had been classified as possible loss risk, with an estimated net cash outlay of around R$ 200 million.
Cosan is participating in the transaction as an intervening party, without assuming obligations, guarantees or liabilities towards Raízen or the third parties covered, except with regard to the existence and validity of the tax loss carryforwards used. The transaction will follow the procedures for approval and validation of the tax credits set out in the executed instruments.
