Originally published in the January 4 edition of World Tax Daily (Copyrights Tax Analysts – www.taxanalysts.com)
Brazil has extended until December 31, 2010, the special tax regime (REPORTO) applicable to imports and local purchases of machinery and equipment destined for Brazilian ports. Provisional Measure 411/2007, regarding the extension, was published in the December 31, 2007, extra edition of Brazil’s official gazette.
REPORTO was created by provisional measure 206/2004 and eventually was converted into Law 11,033/2004. It suspends the IPI (federal excise tax), COFINS (Contribution for the Financing of Social Security), and P.I.S. (Program for Social Integration contribution) for domestic purchases or imports, by port operators, of machinery and equipment used in the loading, unloading, and movement of cargo.
The regime originally was conceived to be valid until December 31, 2005, but it was subsequently extended through December 31, 2007.
David Roberto R. Soares da Silva