UFIR is the acronym of Tax Reference Unit, an index used as a parameter for updating the debit balance of taxes and amounts related to fines and penalties of any nature.
The UFIR, created in 1991, came into force in January 1992, a time when inflation was very high and the index would correct the installments to be paid. Until 1994, the UFIR was updated daily to keep up with inflation. From September 1994 onwards, the update became monthly, in 1995 it became quarterly, in 1996 the correction was made every six months and from 1997 onwards, annually.
Although the laws that disciplined the UFIR restricted its use, the fact is that it served as a unit of account to correct several other obligations, including the correction of legal debts.
The UFIR was used as a measure of value until the year 2000, when was extinguished through provisional measure 1,973-67 of October 26, 2000.
UFIR in Rio de Janeiro
Rio de Janeiro is one of the few states in the federation that continues to use the UFIR. Another example is the state of Paraíba, specifically the municipality of João Pessoa.
Decree No. 27.518 of 11/28/2000 established the Tax Reference Unit of the State of Rio de Janeiro (UFIR-RJ) as a measure of value and parameter update of taxes and amounts exposed in UFIR, in state legislation, as well as relating to fines and penalties of any nature.
The value at UFIR-RJ was set at 3.0023 for 2016. This index has been adjusted annually by the State Finance Department of Rio de Janeiro.