IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 18 Aug 2017 | Removal date: open ended
Still in force

Tax or social insurance relief

Article 1 of Provisional Measure 765/2017 sets one of the main changes introduced in this legislation: the allowance to all taxpayers to deduct the expenses incurred during the phases of exploration and/or production. In addition, it establishes the possibility of accelerated depletion of assets until December 31, 2022, for investments related to development activities. In this sense, the rate will be determined by multiplying the produced units by 2.5. Previously, only the national oil company, Petrobras, was allowed to deduct such expenses.

As to Article 2, it allows bareboat charter agreements related to vessels providing transport, handling, transfer, storage and regasification services for liquefied natural gas to benefit from a 0% withholding income tax (IRRF) for up to 60% of its remittances. Previously, this service category was not contemplated.

 

AFFECTED COUNTRIES

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TABLE
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AFFECTED SECTORS AND PRODUCTS

333 Petroleum oils & oils of bituminous materials, other than crude
334 Petroleum gases & other gaseous hydrocarbons, except natural gas
335 Petroleum jelly, coke or bitumen; paraffin wax & similar products

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