São Paulo will tax software downloaded from the internet
ICMS, which was charged only on programs sold on CD or DVD, will be charged on download sales starting in January
The government of the State of São Paulo will soon change the rules for taxing software, whether in the sale of products recorded on physical media (CD or DVD), or when the license is delivered to the consumer through download. According to decree nº 61.522, published on September 29 by Governor Geraldo Alckmin (PSDB), the rate of 18% of the Tax on Circulation of Goods and Services (ICMS) will be levied on the sale of software, whatever the means of delivery, from January 2016.
Currently, in the case of programs sold on physical media, the government already collects ICMS, but the 18% rate is calculated at double the value of the physical support (CD or DVD), as decree nº 51.619, of February 27, 2007. “Taxation is calculated based on support, which ends up generating negligible value”, says Ivan Ozawa Ozai, deputy director of the tax consultancy at the São Paulo Finance Department. According to him, the government's objective is to align the ICMS taxation to that adopted in other states.
By Thiago Sawada
Source: Estadão (08/10)
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