São Paulo launches tax burden package
Valor Econômico
The Governor of São Paulo, Alberto Goldman (PSDB - Brazilian Social Democracy Party), signed yesterday nine decrees with incentives and releases for companies in the State. Among the measures announced is the release of the ICMS (State Sales and Services Tax) in the acquisition of capital goods to 58 sectors. Besides, the transport of goods intended for export is exempt of ICMS. That is, the operation of transport of the good from the plant to the place where it will be shipped abroad becomes released from the payment of the tax. The decree also foresees the deferment of the ICMS in the operations with inputs used in the manufacture of equipment for the generation of wind energy, besides on parts and components used in the manufacture of machinery and equipment for mineral extraction and construction.
Among other measures is the increase in the use of ICMS credits accumulated in the payment of the tax due on the import of goods. With that, the credits start being accepted also for the payment of any delay fines or interest on deferred payment where there is a delay in the customs houses. As regards defaulted taxpayers, as they adhere to the Program of Encouraged Installment Payment of ICMS Debts, they will be able to regularize their tax situation until February 28, 2011.
The Government of São Paulo also extended until March 31, 2011 the deadline for the use of the benefits of the program to encourage investments made by automobile manufacturers, called Pró-Veículo. This way, the ICMS credits accumulated may be used in projects of increase and modernization of the assembly lines of vehicles located in the State. Another extension regards the benefits to the companies integrating the São Paulo System of Technological Parks, which will be extended until March 31, 2011.