Detalhes

  • Serviço: Tax, International Corporate Tax, Transfer Pricing Services
  • Tipo: Informativo KPMG
  • Data: 8/6/2011

Tax News: Brazilian new tax benefits for Tablets PC 

The recently published Provisional Measure nr. 534/ 2011 reduced to zero the PIS and COFINS rates levied on the manufacturer’s revenue derived from the sale of tablet PCs produced in Brazil under the minimum manufacturing process (PPB) regime.

This provisional measure assures that the aforementioned tax rate reduction of PIS and COFINS is granted to tablet PCs, provided that, besides complying with a specific PPB, duly approved by the Ministry of Technology and Science, some characteristics are observed, such as the size of the tablet and the TIPI (Table of Excise Tax Incidence) classification.

The invoices issued by the producer, wholesaler and retailer upon the sale of these products must contain the words "Product manufactured under minimum manufacturing process”, and must also indicate the normative act that approved the respective PPB project. The PPB benefit is part of the Digital Inclusion Program intended to enhance accessibility to new technologies.

Brazilian Tax Authorities confirm Tax Exemption for Royalties Paid Abroad

The Brazilian tax authorities issued a unifying formal interpretation (Solution of Dissent no. 11/2011), which, although not legally binding, provides a consolidated understanding on PIS-imports/COFINS-imports levied on royalty payments. According to this statement, any remittance solely for the payment of royalties is not considered a triggering event for PIS-imports/COFINS-Imports purposes. Thus, this interpretation should alleviate possible disparities regarding the possibility of assessment of these contributions (usually charged at a combined 9.25% rate over the value of the imported services) over amounts remitted abroad as royalty payments.

The tax authorities provided a caveat that this understanding should only be applied to remittances related to royalty payments. In case the contract covers other operations that may be regarded as services, e.g., technical assistance, such operations should be subject to PIS-imports/COFINS-imports. Thus, the payment for services shall be segregated from royalty payments as failing to do so, would cause PIS-imports/COFINS-imports to be imposed on the full amount remitted.

 

For more information, contact one of our International Corporate Tax professionals of KPMG in Brazil:

International Corporate Tax Group

São Paulo

 

Marienne Coutinho, + 55 11 2183-3182

mmcoutinho@kpmg.com.br

 

Ericson Amaral, + 55 11 2183-3375

eamaral@kpmg.com.br

 

Murilo Mello, + 55 11 2183-3261

murilomello@kpmg.com.br

 

Fabiana Pereira, +55 11 2183-6571

fvpereira@kpmg.com.br

 

Fernando R. Martins, +55 11 2183-3284

fmartins@kpmg.com.br

 

Valter Shimidu, +55 11 2183-3269

vshimidu@kpmg.com.br

 

 

Rio de Janeiro

 

Roberto Haddad, +55 21 3515-9469

robertohaddad@kpmg.com.br

 

Julio C. de Cepeda, +55 21 3515-9133

jcepeda@kpmg.com.br

 

Mauro Ostwald, +55 21 3515-9417

mfostwald@kpmg.com.br

 


Global Transfer Pricing Services Group

São Paulo

Eliete Ribeiro, +55 11 2183-3288

eribeiro@kpmg.com.br

 

Henrique Conti, +55 11 2183-3278

hconti@kpmg.com.br

Tax News -  

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