Brazil grants VAT (ICMS) amnesty
- May 25, 2014 | Richard Asquith
The city of Sao Paulo has launched a tax amnesty for Imposto sobre Circulação de Mercadorias e Serviços (ICMS).
The decrees announcing the amnesty were published at the start of this month. They offer up to 75% off penalties and interest for already overdue amounts registered with the tax office. They also enable installment payments on fines if companies agree to the terms.
ICMS rates vary across Brazil
Brazilian ICMS is charged on the movement of goods in the region, and intra-state transfers. This includes imports and manufactured goods. It is also charged on some services, including transportation and telephony.
The ICMS rate in Sao Paulo region is 18%. Most other regions levy 17%, although Rio de Janeiro charges 19%. There are reduced rates for basic goods.