Brazil

Details

  • Service: Tax, Indirect Tax Services
  • Type: KPMG information
  • Date: 5/2/2012

Tax News: Federal Senate Resolution No. 13 of 2012 

Important change in Brazilian Tax Legislation - Federal Senate Resolution No. 13 of 2012
The recently issued Resolution 13 of 2012 changed to 4% the rate of the ICMS (State VAT) applicable to interstate transactions involving imported goods up to January 1, 2013.

According to the previous legislation interstate transactions of goods were subject to ICMS at a 7% or a 12% rate, varying in accordance with the State of origin and the State of destination of the goods.

After the changes introduced by Resolution 13, interstate transactions with imported goods will be subject to ICMS at a 4% rate, since the goods: I - have not been subjected to a manufacturing process; or II – have been subjected to any transformation, processing, assembling, packaging, repackaging, renovation or refurbishment process, but its Import Content still accounts for more than 40% of its composition.

The benefit is not applicable to: I – imported goods with no similar good produced locally (a list contemplating these goods shall be issued by the Foreign Trade Chamber within the next days); II – transactions with imported natural gas; and III – transactions with goods produced in accordance with the basic production process of Manaus Free Trade Zone, of Information Technology Law (Law 8.248 of 1991) and of the Semiconductors Industry Development Support Program – “PADIS”.

For further information, please contact:

Elson Bueno, ebueno@kpmg.com.br, +55 (11) 2183-3281
Murilo Mello, murilomello@kpmg.com.br, +55 (11) 2183-3621
 

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