São Paulo and Paraná sign cooperation in the tax area
Author: Secretary of Finance
Source: Government of the State of São Paulo, 16/03/2009
The governors of São Paulo, José Serra, and Paraná, Roberto Requião,
signed this Monday, 16th, in Curitiba, a Term of Cooperation between the
two states. The agreement establishes general bases for broad cooperation in the exchange of
experiences of successful actions in both states, in the exchange of
economic-tax information and the availability of management systems
tax and management and control systems for public spending.
After signing, at the Palácio das Araucárias, the Secretaries of Finance of
São Paulo, Mauro Ricardo Costa, and Paraná, Heron Arzua, formalized the two
first protocols, based on the term, dealing with the implementation of the
ICMS tax substitution for operations between the two states involving
products from the cosmetics, perfumery, toiletries and
toilet and also in the mattresses sector (including box), elastic supports for
beds, pillows and pillow top (coated foam layer that goes over the
mattress).
"It is the beginning of the beginning," said Serra. The governor said that the agreements
will be expanded to several other products, little by little, in an agreed manner
between São Paulo and Paraná. “What we have together, Paraná and São Paulo, is the
commitment to reduce the tax burden and, at the same time, fight against
evasion ”, he says.
State farms are already harmonizing the bases for the establishment
protocols in more than a dozen sectors, including hot drinks,
toys, cell phones, building material, food,
electronics and cleaning products.
Under the agreement signed, manufacturers in São Paulo that send goods to the
Paraná, or vice versa, will collect ICMS in advance for the benefit of the state
neighbor. Under the tax substitution regime, the industry or the importer
collects in advance all ICMS that would be paid in the following stages of
until the sale to the final consumer.
The implementation of tax substitution is one of the government's great allies
combating tax evasion. By concentrating the collection at the source, the tax authorities facilitate
monitoring the payment of the tax and ensuring fiscal justice, avoiding
the unfair competition that some companies practice when they do not collect
the tax properly.
Agreement is the eighth held by São Paulo
With the celebration of the cooperation term signed by the government of São Paulo
with Paraná, the number of Brazilian states with which the
current São Paulo administration has already signed agreements of interests related to
tax administration. So far, Mato Grosso, Mato Grosso do Sul, Rio de
Janeiro, Rio Grande do Sul, Ceará, Alagoas and Pernambuco have already signed agreements
with São Paulo.
In April 2007, Governor José Serra signed a first agreement, with the
State of Mato Grosso do Sul. On the same date, the first four
protocols for the implementation of the ICMS tax substitution mechanism for
operations with pharmaceutical products, serums and vaccines for human use or
vet; hot drinks (spirits and wines); home appliance products,
electronics and computer equipment; and animal feed
households.
Still in 2007, in November, São Paulo signed the same agreement with the State of
Rio de Janeiro, also with the immediate signature of two protocols for
implementation of tax substitution in operations with pharmaceutical products,
serums and vaccines for human use and for operations with animal feed
households.
In the following month it was Rio Grande do Sul's turn, which in addition to the
mutual cooperation signed four protocols for the adoption of substitution
ICMS tax for the bedding sectors; cosmetics and perfumery;
parts, components and accessories for self-propelled (self-propelled) and rations for
domestic animals.
In 2008, Mato Grosso and Ceará joined. In the first, there were 7 protocols for
adoption of the tax substitution mechanism. In the second, there were 11.
Pernambuco and Alagoas, in the months of November and December 2008,
respectively, celebrated terms of cooperation with São Paulo. While Alagoas
closed deals for operations with cosmetics, perfumery and hygiene products
in addition to cleaning materials and mattresses, the state of Pernambuco, in addition to
cosmetics perfumes and mattresses, established replacement protocols
with the State of São Paulo for operations with household appliances,
computer equipment, pharmaceutical products, building materials and
cleaning products, animal feed, wines and ciders, spirits and other drinks
hot.
