What ‘export rates’ are?
When we think of taxes on exports, we think about expenses. One should be aware of the entire process to know about the documents to be issued, legislation, transportation, internal taxes, service providers’ fees, import taxes that are collected at the time that the goods are withdrawn, tax exemptions and obligations, financial and banking costs, among others.
We have listed below some of the most common taxes charged by the Brazilian Federal Revenue regarding exports:
EXPORT TAX (IE)
According to the Brazilian Federal Constitution, the export tax is generated when a national or nationalized product leaves the country.
One of its features is the collection with taxation and regulatory functions:
➤ FACTOR THAT GENERATES THE EXPORT TAX: The event that generates the Export Tax is characterized at the moment of the registration issued by SISCOMEX (A Federal Revenue System) for the exit of national or nationalized materials from Brazilian territory to be sent to other countries, whatever the purpose of those leads is. With the exception of personal cases, such as luggage, it doesn’t matter if the export is classified as donation or if the owner and the final importer are the same person or organization: the exit of goods out of Brazil is subject to taxation.
➤ CALCULATION BASIS: The basis for calculating the tax is the price that a specific product (or comparable item) will reach at the export time.
➤ TAX RATES: The tax rate of the IE is 30%, which can be reduced or increased by the Brazilian Executive Power to meet the exchange rate and foreign trade policy goals.
➤ CONTRIBUTOR: The taxpayer is the exporter or its legal representative.
The export of manufactured goods is immune to ICMS . Although not immune, the export of primary products and semi-finished products may also have ICMS exemption in many cases.
Industrialized products intended for export, from national or foreign origin, are, with no-exception, immune from the IPI tax.
In Brazil, exports are exempted from PIS, being the exported goods either finished products or service provisions.
In 1991, a complementary Brazilian law granted exemption of COFINS on revenues derived from the export of goods, even when conducted through cooperatives, consortia or similar entities, including trading companies.
The ISS is not levied on the exports of services. Nevertheless, services developed in Brazil, for which the final result is verified inside national territory are taxable.
Gross sales revenue in exports of domestic manufactured products should be determined by the conversion, into R$, of its value expressed in foreign currency according to the rate fixed at the shipment date of the products to foreign countries.
SOCIAL SECURITY CONTRIBUTION (INSS) – INTERNATIONAL SALES OF RURAL PRODUCTS
There is no INSS on the revenue from the export of rural products.
Even though a meticulous analysis of each individual and specific case must be thoroughly done in order to determine which taxation the Brazilian product or service you are planning to import is subject to, another important strategy, not always remembered, is to evaluate the tax incentives, because due to the lack of knowledge, they are being commonly underutilized in companies.
We are looking forward to hearing from you and clear up any doubts on TAXES or any other issues regarding the import of Brazilian goods. Do not hesitate on talking to us.