ANNOUNCEMENT 09 Apr 2020
In April 2020, the Brazilian authorities announced the elimination of the PIS tax on imports of medicines related to the COVID-19 outbreak.
NUMBER OF INTERVENTIONS
Presidency of the Republic. Presidência da República. Secretaria-Geral. Subchefia para Assuntos Jurídicos. Decreto Nº 10,318 de 9 de abril de 2020. Available at: http://www.planalto.gov.br/ccivil_03/_ato2019-2022/2020/decreto/D10318.htm
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 9 April 2020, the Brazilian Executive adopted Decree 10,318 eliminating the PIS tax on certain medicines classified under tariff lines 3003.9099 and 3004.90.99.
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 act).
The PIS 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 10,318 entered into force on 9 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 10,285 until 31 December 2020.