Temporary measure n° 582 granting tax benefits
Paulo Antônio Machado da Silva Filho (Lawyer in the Tax Law team)
Tâmara Caroline de Souza Utsch Jorge (Intern in the Tax Law team)
The temporary measure n° 582, granting tax benefits in many sectors of the economy, was published on September 20th, in the Official Journal of Brazil (Diário Oficial da União).
This temporary measure provides, inter alia, to extend to more than 15 sectors of the economy the benefit of an exemption. This time the beneficiaries are manufacturers in the field of metal construction, railway equipment and instruments / tools among others. The targeted sectors are no longer liable to the National Institute of Social Security (INSS) to pay the 20% contribution which was imposed to them so far. They must now pay a percentage of 1 to 2% of the invoiced amount.
In addition, the new measure creates a special Incentive Plan for Infrastructure Development in the Industry of Fertilizers (REIF) in order to promote the national industry of fertilizers and reduce dependence on imports.
The measure allows legal persons beneficiaries of the plan to discontinue the payment of PIS / Pasep, Cofins and IPI, with subsequent conversion to a zero debt due, as appropriate.
Depreciation already allows paying off each year a portion of the costs regarding the machinery and equipment, reducing this way the Income Tax. In agreement with the Minister of Agriculture, Mr. Guido Mantega, machinery and equipment acquired until the end of 2012 will be paid off over a period of 5 years and not 10 years as at present. This new measure will allow companies who bought until the end of this year to pay off 20% of the purchase price per year, rather than 10% as under the old arrangement.
One of the other modifications proposed is related to PIS / PAESP and Cofins and the marketing of oranges. The provisional measure interrupts the payment of contributions due to this reason on the sales revenue for export of these products. Finally, the Income Tax is reduced by 30%, from 40% to 10% for independent providers of transport.