Import: ICMS cost by offsetting tax credit score

Ivo Ricardo Losekan

Beneath the pretext of building uniform interstate charges and thereby ending the so-called “conflict of ports”, Federal Senate Decision No. 13/2012 established a uniform ICMS charge of 4% for the interstate sale of imported merchandise.

Nonetheless, tax assortment at customs clearance for the aim of nationalizing overseas items continued to be the complete, or “full” charge, usually 18%.

Opposite to what was broadly reported on the time, as an alternative of lowering and standardizing the speed to cut back taxation, the other occurred once more, resulting in a rise within the tax burden.

the issue that arose

The reason being that the Federal Senate Decision 13/2012 made the importing corporations collectors of the state treasury. It is because ICMS is collected on the full charge of 18% at customs clearance, and when these merchandise are imported into different states, the decision stipulates that gross sales are made at a charge of 4%.

These corporations purchase at 18% ICMS and promote at 4%, paying ICMS prematurely on the one hand and accumulating credit score balances on the opposite. Many do not notice that this credit score stability they construct up can be utilized to repay this ICMS, enhancing their money move. It occurs that this credit score isn’t instantly launched to set off the tax due, which requires the approval of the Treasury first.

The right way to resolve

Within the State of São Paulo, an institution that has an collected credit score to be appropriated as much as a month-to-month restrict of 10,000 Ufesp can go for a simplified calculation of the generated collected credit score established by Decree CAT 207/2009. We remind you that in 2022 this quantity is equal to BRL 319,700.00 (300 nineteen thousand seven hundred reais) monthly.

If the above-mentioned restrict doesn’t attain the quantity of the corporate’s collected credit score stability, the corporate should determine on a price calculation methodology underneath the circumstances set by CAT Decree 83/2009. This modality is complicated as a result of it requires self-checking equal to a month-to-month retroactive “X-ray” of your complete manufacturing facility, together with uncooked supplies, work-in-progress, semi-finished merchandise and completed merchandise, in addition to their respective transformation processes.

Along with the fiscal and accounting complexity, this course of, with the intention to achieve success and quick, should confirm the authorized hypotheses that make up the collected credit score for the tax authorities and display, along with their accounting coaching, an satisfactory framework within the ICMS Regulation, which additionally requires satisfactory information of the authorized framework for the preparation of petitions . Enough IT know-how can be required to create digital information within the right format required by laws.

Some methods can pace up the method of appropriating collected credit score, comparable to requiring a particular regime to anticipate appropriation of collected credit score by means of a financial institution assure or assure.

tax offset

Within the State of São Paulo, primarily based by itself administrative process and authorization from the Minister of Finance, the ICMS tax payable prematurely throughout customs clearance of imports will be compensated by the collected credit score of this tax.

To ensure that this compensation to happen, an administrative course of with SEFAZ is critical, which first acknowledges or confirms the collected credit score stability present within the firm’s tax accounting. After recognition and inclusion within the fiscal present account of the Digital system for the administration of collected credit score in Fazenda Paulista referred to as e-CredAc, the collected credit score can be utilized to pay the ICS payable within the DI – Import Declaration.

A particular tax cost system

In an effort to stop the creation of excessive and everlasting credit score balances, the Finance Division of São Paulo printed Decree CAT 108/2015, which regulates the granting of a particular suspension of entry regime for the suspension of entry of ICMS payable at customs clearance of imported items that will probably be topic to interstate departures at a charge of 4%.

To be able to acquire this particular therapy within the required share of tax discount, the corporate should display, along with the authorized framework, the influence that this collected credit-generating exercise has on its accounting and tax reporting, in addition to the prices that the buildup of the credit score stability, each in outcomes and financially and fiscally talking, as a result of these values ​​generate fictitious revenue and earnings tax on revenue that was not realized.

Normally, the granting of this particular regime doesn’t stop the continuation of the creation of credit score balances, because the tax suspension doesn’t happen in full when it’s granted.

Use of third social gathering credit score If the importing firm doesn’t have its personal tax offset credit,

ICMS regulation of the State of São Paulo permits using credit score from third events.

There are two methods to attain this, the primary is to switch the collected credit score after approval by means of the tax administration’s personal course of underneath the circumstances set out in Article 20 of CAT Decree 26/2010.

One other method adopted by the ICMS Paulista regulation underneath the phrases of the normative directions CAT 3/2009 and notification CAT 37/2010 is to attach the radars with Siscomex by means of import operations on their very own account and thru third events.

The necessities and circumstances for finishing up these import operations are set out within the Normative Instruction RFB 1861 of 2018, which states that the quantities obtained from the principal, whether or not in complete or partly from the duty, are thought-about to be the personal assets of the importer to the order, even when they’ve been earlier than performing the import operation.

Utilizing third-party ICMS credit to pay for ICMS imports advantages patrons (assignors) and sellers (assignors) as a result of the corporate that has the credit score acknowledged and accepted by the Ministry of Finance recovers the quantities to which it’s entitled, whereas the corporate that makes use of the credit score to offset the tax, will cut back your tax burden.

– Tax administrator. Director of LZ Fiscal Group. Author for IOB, Thomson Reuters, amongst others. Member of the Tax Research Affiliation of São Paulo and the Brazilian Tax Planning Institute.



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