Site law that permits defective purchase of services – Época Negócios

From 2023, Brazilian exporters will be able to purchase services such as transportation, insurance, handling and storage of goods with suspension taxes. Today (fifth) the law of establishing the drawback [suspensão de serviços].

The advantage recognized by the WTO, the disadvantage allows the suspension or exemption of the Social Integration Program (PIS) and contribution to social security financing (Cofins) on inputs used in goods produced for a discount abroad. The new law expanded the mechanism to include exporters who purchase services during production.

In order for the issuer to be entitled to the benefit, it must prove that the services are directly and exclusively related to export Or the delivery of a product abroad that takes advantage of the defect mechanism.

According to the Ministry of Economy, the new law will contribute to the introduction of Brazilian companies abroad, which will reduce fees and improve the competitiveness of domestic exporters.

Until now, the doub was granted only for the purchase of national and foreign inputs intended for the manufacture of products to be exported. In 2021, the mechanism supported exports by more than $61 billion, according to the Foreign Trade Secretariat. With the new legislation, services will have the same treatment as physical inputs.

Competitiveness

The suspension of PIS/Cofins for services related to the export of goods will cost about R$1.1 billion in 2023. The Ministry of Economy, in Brasilia, reported that the financial cost is foreseen in the draft Budget Law (PLOA) from next year, sent to the National Congress on the 31st.

According to the Organization for Economic Co-operation and Development (OECD), services account for 35.7% of the added value of Brazilian exports of manufactured goods.

According to a joint study by the Ministry of Economy and the United Nations Development Program (UNDP), several members of the G20 – a grouping of the 20 largest economies on the planet – apply similar tax breaks for purchasing services: South Africa, Germany, Saudi Arabia, Argentina, France, Italy, Mexico, United Kingdom, Russia and European Union.