ANNOUNCEMENT 15 Jun 2011In June 2011, the government of Brazil announced a targeted tax change.
NUMBER OF INTERVENTIONS
Decree No. 7.525 (in Portuguese), http://www.receita.fazenda.gov.br/Legislacao/Decretos/2011/dec7525.htm
Ernst & Young Trade Watch (in English), www.ey.com/Publication/vwLUAssets/Trade_Watch_March_2012/$FILE/TradeWatch_March_12.pdf
On 15 July 2011, the Internal Revenue Service of Brazil (Receita Federal) published Decree No. 7.525 on the special tax relief programme entitled RECOPA (Regime Especial de Tributaçăo para Construçăo, Ampliaçăo, Reforma ou Modernizaçăo de Estádios de Futebol), which grants customs import duties, VAT and social contributions (PIS/COFINS) exemptions on imported machinery and materials for construction projects related to the FIFA World Cup of 2014. However, the suspension of import duty for such machinery and materials is only granted for goods that cannot be locally sourced.