As a remainder from the "port war" fought between the federated states after more taxpayers, for years the state of Paraná has granted presumed credits on State VAT levies on imports made in its territory.

On February 9, 2015, an alteration to State VAT Regulation in Paraná modified the applicable percentage of presumed credits applicable to industrial companies that import goods in that state.

Specifically in relation to imports of raw materials, intermediate or secondary materials or packing materials to be used in production processes, the following parameters are now applicable: tax suspended on imports will be paid on the output of industrialized goods, where the industrial company is allowed to book credits corresponding to 50% of tax due, up to the limit of 6% on the import base value, resulting in a minimum tax burden of 6%.

Those new directions mean a decrease to the benefit, since the presumed credits were booked at 8% effective percentage, instead of the 6% allowed now.

Seizing opportunities - Newsletter Brazil - Issue: March 2015

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