Brazil

Details

  • Service: Tax, Indirect Tax Services
  • Type: Regulatory update
  • Date: 7/20/2012

Tax News: Cofins on Importation – Provisional Measure nº 563/2012 

Cofins on Importation – Rate increase - Provisional Measure nº 563/2012
Provisional Measure (MP) nº 563/2012, in a deployment of the Brazilian Federal Government´s program called “Brasil Maior” (a plan in-depth to provide incentives to productive sector).

The MP nº 563, brings some changes, among which: new incentive programs; changes to existing programs, punctual exonerations; transfer pricing application rules and changes to Cofins-Import rate.

Rate increase – Cofins on Importation

According to the new disposals brought by MP 563/2012, Cofins on Importation rate has now been increased to 1% (one percent), which will correspond to a total of 8,6% (eight point six percent), regarding import operations with the products listed at the appendix to Law nº 12.546 of 2011, which includes plastics, rubber made products, leather, textiles, several mechanical instruments and appliances, boats and floating structures, electrical equipments, among others.

Legality:

The provisions are effective beginning on August, 01st, 2012.

Impacts:

In view of the changes above, it remains true that the possible impacts of these tax measures, such as the issue of COFINS credits maintenance, should be viewed with due caution, not ruling out the need for monitoring the conduct of the MP 563 / 2012, as well as eventual acts of the Federal Revenue of Brazil that could be edited concerning the matter in analysis.

For further information, please contact:

Indirect Tax and Customs Group

Roberto Cunha, rcunha@kpmg.com.br
+ 55 (11) 2183-3118

Elson Bueno, ebueno@kpmg.com.br
+55 (11) 2183-3281

Murilo Mello, murilomello@kpmg.com.br
+55 (11) 2183-3621
 

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