Brazil federal revenue service agrees to Guararapes demand of tax credit

Guararapes Confecções S.A., which owns Lojas Riachuelo, one of Brazil's largest retailers, said on Monday that the federal revenue service has agreed to a 1.17 billion reais ($303 million) tax credit sought by the company.

Guararapes said in a securities filing that the credit resulted from a court decision allowing the exclusion of the ICMS sales tax from calculations of PIS/COFINS payroll and social security tax credits.