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:
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