How to Export to Brazil - Sprint Lazio
How to Export to Brazil - Sprint Lazio
How to Export to Brazil - Sprint Lazio
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<strong>Brazil</strong> – Ministry of External Relations<br />
III.6.3. Tax on Industrialized Products (IPI)<br />
The Tax on Industrialized Products (IPI) is an indirect federal tax that is levied on the<br />
goods listed on its application table – TIPI, which is based on the Mercosur Common<br />
Nomenclature (NCM), regardless of whether the industrialization process occurred<br />
within the country’s borders or abroad. The levying of this tax is justified by the need<br />
<strong>to</strong> promote an equalization of costs between imported industrialized products and<br />
products manufactured nationally.<br />
The IPI follows the principle of non-cumulativity. Thus, the value paid at the time of<br />
import is credited by the importer for subsequent compensation of the tax due in<br />
future operations that they may perform and that are subject <strong>to</strong> that same tax.<br />
The IPI also follows the principle of selectivity. In other words, the tax burden is different<br />
in consequence of how essential the product is, so that the rate may drop <strong>to</strong> zero for<br />
the more essential products.<br />
The calculation basis for the IPI is the cus<strong>to</strong>ms value of the merchandise plus the<br />
Import Tax (II) value, Some products in chapters 21 and 22 of the NCM (beverages)<br />
are subject <strong>to</strong> the tax per unit or per amount of product, depending on the case.<br />
The tax is calculated by applying the rates set in the TIPI over the calculation basis. In<br />
almost all cases, the IPI rate is ad valorem and the tax due is equal <strong>to</strong>:<br />
IPI = TIPI (%) x (Cus<strong>to</strong>ms Value (CV) + II)<br />
III.6.4. PIS-Import and Cofins-Import<br />
The Cofins-Import and PIS-Import are indirect federal social contributions <strong>to</strong> fund<br />
social security, and are levied on the import of foreign products. These contributions<br />
give isonomic fiscal treatment <strong>to</strong> the goods produced in the country, which are liable<br />
<strong>to</strong> these contributions, and <strong>to</strong> imported goods, which are taxed at the same rates as<br />
the national goods.<br />
These social contributions also follow the principle of non-cumulativity. Therefore, the<br />
value paid at the time of import can be credited by the importer for subsequent<br />
compensation of the contributions due.<br />
In almost all imports, the rate applied for PIS is 1.65% and for Cofins, 7.6%. The<br />
calculation basis for both contributions is the cus<strong>to</strong>ms value (CV) of the imported<br />
goods, plus the value of the Tax on the Distribution of Goods and Services (ICMS, see<br />
section II.6.6), levied on imports, and the value of the contributions themselves, as<br />
these are included in the final price of the goods (recursive5 calculation). Thus, the<br />
ontributions follow these formulas:<br />
PIS = PIS rate x (CV + ICMS + PIS + Cofins)<br />
Cofins = Cofins rate x (CV + ICMS + PIS + Cofins)<br />
5 Calculation method in which the variable searched is also part of the formula <strong>to</strong> calculate it.<br />
62 <strong>How</strong> <strong>to</strong> export <strong>to</strong> <strong>Brazil</strong>