ANNOUNCEMENT 01 Apr 2020
In April 2020, the Brazilian authorities announced the elimination of the IPI tax on imports of products critical to fighting the COVID-19 outbreak.
NUMBER OF INTERVENTIONS
Presidency of the Republic. Presidência da República. Secretaria-Geral. Subchefia para Assuntos Jurídicos. Decreto Nº 10.302, de 1º de abril de 2020. Available at: http://www.planalto.gov.br/ccivil_03/_ato2019-2022/2020/decreto/D10302.htm
Presidency of the Republic. Presidência da República. Secretaria-Geral. Subchefia para Assuntos Jurídicos. Decreto Nº 8,950 de 29 de dezembro de 2016. Available at: http://www.planalto.gov.br/ccivil_03/_Ato2015-2018/2016/Decreto/D8950.htm
Brazilian Government. Ministério da Economia. Notícias. "Ministério da Economia anuncia medidas para diminuir o impacto do coronavírus no país". Available at: https://www.gov.br/economia/pt-br/assuntos/noticias/2020/marco/ministerio-da-economia-anuncia-medidas-para-diminuir-o-impacto-do-coronavirus-no-pais
Official Gazette of Brazil. Diário Oficial da União. Decreto Nº 10.503, de 2 de outubro de 2020. Available at: https://www.in.gov.br/en/web/dou/-/decreto-n-10.503-de-2-de-outubro-de-2020-280889044
On 1 April 2020, the Brazilian Executive adopted Decree 10,302 eliminating temporarily the tax on industrialized products (i.e. IPI in Brazilian) applicable to certain imports.
Concretely, the new legislation applied to certain pharmaceutical articles, gloves and medical thermometres classified under tariff lines NCM 3926.90.40, 4015.19.00 and 9025.11.10. Previously to this legislation, the applicable IPI tax was 10%, 15% and 15% respectively.
In a previous announcement made in March 2020, the government stated that the elimination of the IPI tax in the imports of certain goods was to be adopted in order to fight the COVID-19 outbreak. In addition to this new rule, the government has adopted several other measures (please, see related state acts).
The IPI tax is a federal excise tax applies, with a few exceptions, to all sales and transfers of goods manufactured or imported in Brazil. This tax is part of the Brazilian VAT.
Decree 10,302 entered into force on 1 April 2020 and applies until 30 September 2020.
On 2 October 2020, the Brazilian Executive adopted Decree Nº 10503 extending the elimination of the IPI tax approved via Decree 10,302 until 31 December 2020.