Tax Incentives

Grupo ELO es una empresa especializada en servicios de orientación, planificación y obtención de incentivos fiscales. Su equipo posee amplio conocimiento de mercado, dominio de la legislación y experiencia en los procesos de obtención de los siguientes incentivos:

State Tax Icentives:

VAT Tax (ICMS): Through negotiations with state governments and depending on the investment size it’s possible to get ICMS tax incentives, such as deferment of ICMS on the import of inputs and fixed asset equipment, deferment of ICMS on local purchases (inputs and fixed assets), and even reduction in the final tax rate, among others. We got approval for tax incentives in the states of Minas Gerais, Rio de Janeiro, São Paulo, Espírito Santo, Maranhão, Santa Catarina, Paraná , Rio Grande do Sul, Pará and Rondônia.

Service Tax (ISS): Through negotiations with City Halls we get reduced service tax rates, depending on the project size.

Federal Tax Icentives:

1. DRAWBACK
2. RECAP - Special tax treatment in the purchase of capital goods by export companies
3. REIDI - Special tax incentive for infrastructure development
4. REPETRO - Special customs treatment for import and export of goods intended to oil and natural gas survey and exploitation
5. REPORTO - Tax incentive for port structure modernization and expansion

 

1. DRAWBACK

Is an export incentive that comprises suspension, reimbursement or exemption of taxes levied on the import and/or domestic purchase of goods to be used as a raw material or component of products to be exported.

  1. In the case of Exemption Drawback,the company may import tax-free goods in equivalent quantities and quality as a replacement for previously imported goods already used for manufacturing already exported products.


  2. The Reimbursement Drawback returns, in the whole or in part, taxes paid on the import of goods for processing and re-export or goods used in the manufacture, supplementation or packaging of another exported good.


  3. Suspension Drawback:: The approval of this drawback option is subject to the commitment to export, within a given period of time, products manufactured with the goods to be imported, in the stipulated quantity and value.


  4. Domestic Suspension Drawback: This drawback mode covers the purchase of goods in the domestic market to be used in the production or processing of another good to be exported. However, in order to qualify for the benefits of this drawback mode, the exporter must use at least one imported component or raw material, in addition to the domestic ones.


2. RECAP 

It’s eligible for the Recap Program the company that is preponderantly an exporter, i.e. the company whose gross revenue from exports made during the first calendar year before adherence to Recap Program is equal to or higher than 70% (seventy percent) of its overall gross revenue from goods and services sold in the period, and that undertakes to comply with such percentage limit during 2 (two) calendar years.
Tax incentive: Suspension of several taxes (PIS/PASEP, COFINS, PIS/Pasep-Import and COFINS-Import) in the case of sale or import of new equipment, machines, apparatuses and instruments, if such items are purchased by a company qualified for the Recap Program for incorporation into its fixed assets. The suspension is applicable to the purchases and imports that take place in the period of 3 (three) years from the date of adherence to the Recap Program.  

3. REIDI

It’s eligible for the Reidi the company that has an approved project for the construction of infrastructure works in the following areas:

The Reidi Program suspends the application of several taxes (PIS/Pasep, Cofins, PIS/Pasep-Import and Cofins-Import) levied on:

a) sales of new equipment, machines, apparatuses and instruments to be incorporated into infrastructure works and intended for the fixed assets, if purchased or imported by a company qualified for the Reidi Program;

b) sales of construction material to be used in or incorporated into infrastructure works and intended for the fixed assets, if purchased or imported by a company qualified for the Reidi Program;

c) services rendered by a company established in Brazil to another company qualified for the Reidi Program, if such services are applied in infrastructure works intended for the fixed assets;

d) payment for services directly imported by a company qualified for the Reidi Program, if such services are applied in infrastructure works intended for the fixed assets.

4. REPETRO 

Repetro allows the following customs treatments to be adopted, on a case-by-case basis:

I - export without leaving the customs territory and subsequent granting of special temporary entry treatment to the exported goods;

II - import in the drawback system under the tax suspension mode of raw materials, semi-finished or finished products, and parts for the production of goods to be exported according to item I above; and

III - granting of special temporary entry treatment in the case of foreign or denationalized goods coming directly from abroad.

The legal entity could be qualified to the Repetro:

I - holds an authorization or grant to carry out oil or natural gas survey, exploitation or production in Brazil; and

II - has been contracted by the company mentioned under item I above for rendering services in connection with the scope of such authorization or grant, and its subcontractors as well.

5. REPORTO

The following entities are eligible as beneficiary under this tax incentive system:

I - Port operators, organized port grantees, public port facility leaseholders, companies authorized to operate private mixed port facilities;

II -Railway transporters; and

III - Dredging companies, grantees or licensees of customs warehouses in the secondary zone, and professional training centers.

Tax incentive: Tax suspension (IPI, PIS, COFINS and Import Tax) on the sales of machines, equipment, spare parts and other goods to the domestic market and on the imports of items if they are directly imported or purchased by the beneficiaries of the Reporto program and intended for fixed assets to be used exclusively in ports for performing goods loading, discharge and handling services, dredging services, and, in the case of professional training centers, worker training and capacity building.  



© 2011 Grupo ELO - Todos os direitos reservados - Desenvolvido por GTA Multimídia