On September 5, 2022, Law No. 14,440/2022 was published in the Official Gazette of the Federal Executive Power, authorizing, among other provisions, the inclusion of services in the drawback suspension regime.
The new law amends Law No. 11,945/2009 to authorize the suspension of the Contribution to PIS/Cofins and the Contribution to PIS/Cofins-Import in the acquisition of inputs in Brazil or in the importation of services to be used directly and exclusively in the manufacture of goods to be exported or delivered abroad under the drawback suspension regime.
Law No. 14,440/2022 lists 16 services that will be treated similarly to goods used in the manufacture of items sold abroad. These services include customs clearance, storage of commodities, transport (road, rail, air, waterway or multimodal cargo) and installation and assembly of exported goods.
The Special Service of Foreign Trade and International Affairs (“SECINT”) and the Brazilian Internal Revenue Services ("IRS") will create regulations related to Law No. 14,440/2022 and monitor compliance with the new law. Also, the executive branch may expand the list of services covered by the new law.”
Law No. 14,440/2022 will come into force on 01/01/2023.
For more information regarding this Legal Update, please contact our Tax team.
The new law amends Law No. 11,945/2009 to authorize the suspension of the Contribution to PIS/Cofins and the Contribution to PIS/Cofins-Import in the acquisition of inputs in Brazil or in the importation of services to be used directly and exclusively in the manufacture of goods to be exported or delivered abroad under the drawback suspension regime.
Law No. 14,440/2022 lists 16 services that will be treated similarly to goods used in the manufacture of items sold abroad. These services include customs clearance, storage of commodities, transport (road, rail, air, waterway or multimodal cargo) and installation and assembly of exported goods.
The Special Service of Foreign Trade and International Affairs (“SECINT”) and the Brazilian Internal Revenue Services ("IRS") will create regulations related to Law No. 14,440/2022 and monitor compliance with the new law. Also, the executive branch may expand the list of services covered by the new law.”
Law No. 14,440/2022 will come into force on 01/01/2023.
For more information regarding this Legal Update, please contact our Tax team.
