Brazil

Details

  • Service: Tax, Indirect Tax
  • Type: KPMG information
  • Date: 1/23/2013

Tax News: Opportunities in the Olympic and Paralympics Games 

Tax Opportunities in the Olympic and Paralympics Games

 

As of January 2013, taxpayers who are involved in activities related to the Olympic and Paralympics Games will benefit from the exemption of several taxes (Law No. 12,780, of January 10, 2013).

Property, goods and services for use and consumption directly linked to the organization or realization of the events will be exempt of Import Tax, IPI (Excise Tax), PIS and COFINS (Social Contributions) and CIDE (Contribution on Intervention in the Economic Domain).


Benefits and tax exemptions include exports and domestic operations.

The law also grants suspension/total exemption of taxes for various durable goods, provided that certain requirements are met.

In addition to goods and services, the tax exemption also applies to operations linked to the organization, as well as the realization of events.

We emphasize that the exemption from the withholding income tax, the IOF tax (Tax on Financial Operations), social contributions and CIDE, granted to the International Olympic Committee and related companies do not reach any eventual income or capital gains earned on financial transactions or sale of assets and rights.

Important to notice that legal entities who acquire products for use or organization of the Olympic Games will be exempted from the payment of IPI.

It is noteworthy that the tax benefits for sponsors are linked with the necessity of a contract with the International Olympic Committee and Rio 2016.

Nonresident Individuals who work directly and personally in the country on the realization of events are also granted with the exemption of income tax payment.

Finally, the mentioned benefits are applicable to taxable events that occur between January 1, 2013 until December 31, 2017.

For more information, please contact a tax professional with KPMG in Brazil:

State and Local Tax – SALT/ Customs / Compliance


Lúcio Abrahão Monteiro Bastos, +55(11) 3138 5071, lbastos@kpmg.com.br
Mariana Carissio, +55(11) 3138 5070, mcarissio@kpmg.com.br
Ricardo Bonfa de Jesus, +55(11) 3138 5077, rjesus@kpmg.com.br
Elson Eduardo Bueno, +55(11) 2183 3281, ebueno@kpmg.com.br
Simone de Medeiros, +55(11) 2183 3620, smedeiros@kpmg.com.br
Atila Borba Vaccaro Pidoni Mota, +55(11) 2183 3397, abmota@kpmg.com.br

 

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