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Brazil's Supreme Court Grants Injunction to Exempt Export Income From Social Tax

In a surprising unanimous decision, Brazil’s Supreme Court on September 17 granted an injunction to prevent the Federal Revenue Department from assessing a taxpayer for excluding its export income when calculating the 9 percent Social Contribution on Net Income (CSL)....

President Vetoes Exemptions in Law Amending Brazil's Tax Rules for Export Zones

Brazil’s President Luiz Inácio Lula da Silva has signed Law 11,508/07, which changes the tax regime applicable to the country’s special export processing zones (ZPEs) — but first he vetoed 19 articles, upsetting supporters of the original law project and...

Advisory Board Recommends Cap on Brazil's Tax Burden

Brazil’s Council for Economic and Social Development (Conselho de Desenvolvimento Econômico e Social, or CDES)(1) on July 17 submitted a proposal to President Luiz Inácio Lula da Silva recommending that the government legally limit the country’s maximum tax...

Corporate Reorganizations Trigger Bank Transactions Tax, Brazil's Revenue Department Says

Brazil’s Federal Revenue Department (FRD) has stated that corporate reorganizations and successions are subject to the 0.38 percent bank transactions tax (CPMF). That official position was published July 19 in the official gazette as Interpretative Declaratory Act (Ato...

Brazil Considering Extra Tax on 'Extraordinarily High' Bank Profits

A controversial law project currently under review by Brazil’s House of Representatives would create an extra tax on “extraordinarily high” profits realized by banks and other financial...

Brazil's Revenue Department Tightens Reins on Domestic Drawback Regime

Declaratory Interpretative Act (ADI) 12/07, which will affect hundreds of companies that have enjoyed tax breaks from Brazil’s domestic drawback regimes, was published in the official gazette on July 11. ADI 12/07 provides that Brazil’s tax-beneficial domestic...

Brazil's Supreme Court Rejects Excise Tax Credit for Exempt Materials

Brazil’s Supreme Court has ruled that taxpayers are not legally entitled to take federal excise tax (IPI) credits on purchases of materials subject to IPI exemption, zero rating, or...

Brazil Announces Economic, Tax Measures to Boost Competitiveness

Brazilian Minister of Finance Guido Mantega and Minister of Development, Industry, and Foreign Trade Miguel Jorge on June 12 announced an economic and tax package designed to ensure the competitiveness of certain economic sectors. The announcement was prompted by the...
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