It was published in the Brazilian Official Gazette of July 29 (Page 1 - Extra Edition C, number 143), Decree 11,158/2022, approving the new Tax Incidence Table of the Tax on Manufactured Products - TIPI, to be effective as of August 1, 2022.
The new Decree contains four annexes to reproduce the Mercosul Common Nomenclature - NCM codes, which compose the table. Repeating provisions of Decree 10.985/2022, which allowed the ficta return to distributors of vehicles classified in position 87.03, upon issuance of an invoice, the new Decree also brings this possibility, changing the deadlines as follows:
a) valid for vehicles in stock on July 31, 2022.
b) may be made until October 31, 2022.
Note: There is an error in the wording of item III § 3º of art. 5 of the new Decree, in referring to Decree 11.156 when issuing the invoice, when the correct thing to do would be to mention Decree 11.155.
The New Decree revokes Decree 10,923, of December 30, 2021, and Decree 11,055, of April 28, 2022, which approved and changed the Tax Incidence Table of the Tax on Industrialized Products - TIPI, respectively.
According to a note published on the site gov.br, on 30/07, [1] the new Decree aims to enable the 35% reduction in the Tax on Industrialized Products (IPI) for most products manufactured in Brazil and, at the same time, comply with court decision (ADI 7153) which determined the preservation of the competitiveness of products produced in the Manaus Free Trade Zone (ZFM).
Also according to the note, by detailing the products that will have their rates changed, the new edition clarifies the correct application of IPI on the turnover of industrialized products, ensuring legal certainty and the advancement of tax relief measures. The wording also presents specific treatment to preserve practically all the effective production of the ZFM, taking into consideration the Basic Productive Processes.
Vehicles
The note also states that the measure brings additional reduction in IPI, from 18% to 24.75%, for Vehicles, and that the increase in this percentage equates the tax reduction for the automotive sector to that granted to other industrialized products.
Manaus Free Zone
According to news published by "Estadão Conteúdo" and reproduced by "exame.com" [1] on July 22, the government would be preparing this new Decree to replace Decree 11.055/2022, questioned in the Supreme Court (STF). According to sources heard by Estadão/Broadcast, real-time news system of the Estado Group, the reduction would remain at 35% but would apply only to products not manufactured in the Manaus Free Trade Zone.
Brazilian Supreme Court
Recalling that the Minister Alexandre de Moraes, the Supreme Court (STF), suspended the effects of presidential decrees in the part that reduce the IPI rates on products nationwide and that are also manufactured in the Manaus Free Trade Zone industries (ZFM). The rapporteur granted an injunction in the Direct Unconstitutionality Action (ADI 7153), filed by the Solidarity Party.
The injunction, which will be submitted to referendum of the Plenary, suspends the effects of Decree 11.052/2022 and Decrees 11.047/2022 and 11.055/2022, only with respect to the reduction of rates that reach the products also produced in the ZFM.
[1] https://exame.com/economia/ipi-economia-prepara-novo-decreto-para-cortar-imposto-de-4-mil-produtos/
This article is informative and general in nature, and does not constitute legal advice for any specific operation or business. For any additional information, please contact us by e-mail reginaldo@rastaxlaw.adv.br
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Reginaldo Angelo dos Santos is Master of Laws candidate, area of concentration: "Appropriate Business Dispute Resolutions" from Paulista Law School, São Paulo. Specialist in Corporate Law from Getulio Vargas Foundation - FGVLaw, Sao Paulo. Specialist in Tax Law from Catholic University - PUC, Sao Paulo. Extension in Tax Law from IBDT/USP, Sao Paulo. Training Course in Tax Arbitration in Lisbon, in association with Getulio Vargas Foundation - FGVLaw. Bachelor of Laws and Accounting. Held leadership positions for over 20 years in legal and tax areas in large national and multinational companies. Currently Tax Attorney, Tax Advisor, and MBA Professor in Tax Management in São Paulo. Experience in Finance and Law, with emphasis in Tax Management, Tax Law and Corporate Law. Member of the Special Committee on Tax Litigation from the Brazilian Bar Association - São Paulo Section - Biennium 2019-2021. of the Research Group "Appropriate Dispute Resolutions in Tax Matters", from Tax Law Professional Master's Degree at FGVLaw, São Paulo. Co-author of the book "Tax Arbitration in Brazil and Portugal" - FGVLaw - 2022. Member of the Brazilian Bar Association and the Regional Accounting Council, both in São Paulo. Native Portuguese and fluent in English and Spanish.
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