• Service: Tax, Global Indirect Tax, International Tax
  • Type: Regulatory update
  • Date: 7/1/2014

Brazil - Update on federal, state tax amnesty programs 

July 1:  Provisional Measure (MP 638/14) as issued in June 2014, is intended to extend the availability of a tax amnesty program under what is referred to as a “special tax recovery program” (REFIS), as enacted by Law 11,941/09 and Law 12,249/10.

In summary, the federal tax amnesty program (pending final approval of MP 638/14) provides for the following elements.

  • Eligible tax debts are those due until 31 December 2013.
  • Amnesty applications are due until the last business day of August 2014.
  • Amounts of payments required—for tax debts amounts up to R$ 1,000,000.00 (approximately U.S. $ 435,000.00), there is an anticipated “down payment” of 10% the full tax debt amount. For tax debts greater than BRL 1,000,000.00, the anticipated down payment is 20% of the full tax debt amount. Taxpayers are allowed to pay this down payment in five installments.

State amnesty programs

At the Brazilian state level, certain states have also made available tax amnesty programs for the Brazilian state sales tax (ICMS).

In general, the states of Rio de Janeiro and Sao Paulo have made available programs allowing for the payment of ICMS liabilities and a reduction of possible penalties.

The state ICMS amnesty programs are only available for taxpayers domiciled in participating states. Read TaxNewsFlash-Americas.

For more information, contact a tax professional with KPMG’s Americas Center:

Devon Bodoh

(202) 533 5681

Alfonso A-Pallete

(305) 913 2789

Murilo Mello

(305) 913 2781

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