Drawback: MP extends suspension of taxes for exporting companies

The federal government has extended tax incentives for Brazilian companies that operate in the foreign trade area and adopt the special drawback regime.

Such extension was determined by Provisional Measure nº 960, published on May 04, 2020, and reaches the payment of the following taxes provided for in the concessionary acts of said special treatment, which have been extended for one year by the tax authority and which will be completed in 2020:

• Import Tax (II);
• Tax on Industrialized Products (IPI);
• Social Contribution (PIS-Pasep);
• Social Contribuiton (Cofins);
• Social Contribuion (PIS / Pasep-Import);
• Social Contribuion (Cofins-Import).

The terms may still be extended, on an exceptional basis, for another year, counting from the date of the respective term.

Drawback is a special customs regime in which federal taxes are suspended on imported or purchased inputs in the domestic market, for use in the industrialization of the product to be exported.