On October 1, 2019, Decree No. 46,781 was issued by the State of Rio de Janeiro, regulating the deferral of ICMS on imported goods as they clear customs.
Below we analyze the main aspects of the decree:
- The total or partial deferral of ICMS is granted on imported goods destined for trading purposes or use as raw material, intermediate material or secondary material in the manufacturing process in Rio de Janeiro State.
- The transactions must take place within 60 days of clearing customs for goods destined for trade and within 120 days for goods to be used as inputs in the manufacturing process. If these deadlines are not met, the regular ICMS tax rate will be levied and penalties and fines will be imposed. This deadline may be extended for up to 60 additional days in cases in which goods have been delayed at customs due to regulatory agents' procedures.
- In the event of a partial deferral, the importer must collect 4% of ICMS—the difference deferred—at the customs clearance.
- The decree does not apply to imports of goods (i) for use and consumption (ii) by companies classified in the "Simples Nacional" (iii) for the goods listed in its Annex.
- The payment of the deferred ICMS will be made with the ICMS due on the local or interstate transaction.
- The following requirements must be met: the company that is the importer or owner of the goods or that ordered the goods must (i) have a facility located in Rio de Janeiro State and (ii) be registered with and regularly pay taxes to SEFAZ (iii) and owe no debt to the State of Rio de Janeiro, and (iv) the clearing through customs must occur in the State of Rio de Janeiro.
- The tax compliance mentioned in items (ii) and (iii) above applies to any company in which the applicant is a shareholder.
- The benefit can be cancelled by SEFAZ, at any time, if the beneficiary fails to meet the requirements or fails to collect the deferred tax.
- As an ancillary obligation, the beneficiary must submit a set of fiscal documents and a monthly report every month until the 10th month following the transaction.
The Decree will be effective as of December 1, 2019.
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This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.