Tag: ICMS reform

E-commerce estimates losses of R $ 5 billion with change in ICMS

The new tax rules on product sales over the internet are expected to reduce e-commerce revenue by R $ 5 billion this year, previously estimated at R $ 56,8 billion at the end of 2016, according to the Brazilian Electronic Commerce Association ( ABComm). The association argues that the sharing of the tax between the state of origin and destination of online sales, implemented on the last day of the 1st, has bureaucratized and stopped the operation of thousands of small virtual stores opting for Simples Nacional, and that the new system generates duplication and double taxation. Before, ICMS was charged only in the state of origin of the product.

Source: O Globo (28/01)

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Planalto signs agreement to compensate states for changes in ICMS

The government closed an agreement with the National Congress to unlock the reform of the ICMS (Tax on Circulation of Goods and Services), which is state. The last obstacle was the creation of a fund that will compensate the states for changes in the tax rate. But the Minister of Finance, Joaquim Levy, sewed with parliamentarians a settlement whereby the source of funds for this fund will come from the tax collection that is obtained with the repatriation of money sent abroad without being declared to the IRS. The measure is in a bill that is already pending in Congress and will be put to a vote in the coming days.

The idea is to open a deadline for taxpayers to enter this money in Brazil, settle accounts with Leão and be amnestied for crimes such as tax evasion, foreign exchange evasion and money laundering. When the funds enter the country, they will be taxed at a rate of 17,5% in Income Tax (IR) and a further 100% fine. According to parliamentarians' calculations, the collection potential is at least R $ 40 billion, half of which would go to the state funds.

 

Source: O Globo (09/07)

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