Following the provisions of Article 4 of Law No. 7,495/2016, the Chief of Staff Joint Resolution/SEFAZ No. 11/2018 ("Resolution") was published, establishing competencies and procedures to verify compliance with the requirements and conditions associated with so-called 'non-general tax benefits' in Rio de Janeiro.
According to the Resolution, non-general tax benefits are considered as those:
I - whose concession has occurred:
- by order of the administrative authority, upon request of the interested party;
- by Law or State Decree that benefits taxpayer's predetermined establishment;
- by administrative proceeding, agreement term or contract;
- by mere communication, when there is a requirement to fulfill obligations;
II - whose concession rule contains provision for:
- prior approval of an investment project;
- performance of certain investments;
- presentation of consultation letter;
- commitment to collect minimum ICMS amounts;
- environmental regularity;
- the need to inform of not using the benefit, when the establishment does not choose to enjoy it;
- its enjoyment being conditional on the fiscal regularity of the establishment, in the case of benefits associated with a specific activity sector or region of the state, or to operations with a certain category of goods.
According to Article 2 of the Resolution, establishments that use the aforementioned tax benefits must submit to the Secretary of State Finance and Planning – ("SEFAZ") information and documents necessary to prove compliance with the requirements and conditions established in the legislation. Such information must be submitted annually, in the month of July, through the delivery of digital files to the Fiscal Benefits Verification Portal of the official SEFAZ website.
Establishments not in compliance with the conditions and requirements of the tax benefits may be subject to temporary suspension of use or the definitive loss of the right to enjoy the tax benefits. Taxpayers may appeal this decision, as well as submit new information and documents.
The process of verifying compliance with the requirements and conditions of tax incentives or tax benefits for the year 2017 and 2018 will be handled collectively.
Taxpayers who have already proven compliance with the requirements and conditions established in the legislation for the enjoyment of tax incentives or tax benefits, in accordance with SEFAZ Resolution No. 108/2017, are exempted from the presentation of documents for this purpose in the current fiscal year.
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Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."
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