ANNOUNCEMENT 24 Oct 2018

The Brazilian Government launched a new special regime for the industrialization of goods for the exploration, development and production of hydrocarbons.

NUMBER OF INTERVENTIONS

2

  • 1 harmful
  • 0 neutral
  • 1 liberalising

SOURCE

Official Gazette. Imprensa Nacional. Decreto No. 9.537 de 24 de Outubro de 2018. Available at: http://www.in.gov.br/web/guest/materia/-/asset_publisher/Kujrw0TZC2Mb/content/id/47100742/do1-2018-10-25-decreto-n-9-537-de-24-de-outubro-de-2018-47100466

Inception date: 25 Oct 2018 | Removal date: open ended
Still in force

Internal taxation of imports

On 24 October 2018, the Brazilian Executive has adopted Decree 9,537 launching Repetro-Industrialization a new special regime for the industrialization of goods related to the exploration, development and production of oil, natural gas and other hydrocarbons.

In the case of international trade, the new legislation allows manufacturers to import with the suspension of the payment of federal taxes, raw materials, intermediate products and packaging materials used in the manufacturing of products destined to the exploration, development and production of hydrocarbons.

The term of suspension of payment of taxes will be up to one year, renewable for a period not exceeding five years in total.

Companies purchasing tax-exempt goods have up to three years to three years to sell manufactured goods. In the event of failing to do so, they will be required to collect unpaid taxes.

Only companies qualified with the Brazilian Internal Revenue Service will be able to join the Repetro-Industrialization regime. 

This Decree entered into force on 25 October 2018.

 

Inception date: 25 Oct 2018 | Removal date: open ended
Still in force

Tax or social insurance relief

The launch Repetro-Industrialization formalized by Decree 9,537 on 24 October 2018, allows manufacturers to import with the suspension of the payment of federal taxes, raw materials, intermediate products and packaging materials used in the manufacturing of products destined to the exploration, development and production of hydrocarbons.

Companies joining the regime will enjoy up to one year of suspension of payment of taxes, renewable for a period not exceeding five years in total. Participants failing to sell the manufactured good in a period of up to three years, companies will be required to collect unpaid taxes. 

Only companies qualified with the Brazilian Internal Revenue Service will be able to join the Repetro-Industrialization regime. 

This Decree entered into force on 25 October 2018.

 
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