New ICMS rates come into force in 2024

In recent months, several federative units of Brazil have adjusted their internal rates for the Tax on the Circulation of Goods and Services (ICMS). The adjustments are part of a government strategy to bolster state budget and mitigate potential impacts arising from the future redistribution of tax revenues due to upcoming changes set out in the recently enacted Tax Reform.

It should be noted that among all the Brazilian states, only Rio Grande do Norte has implemented a reduction in its tax rate, lowering it from 20% to 18%, while others have maintained their existing rates. 

The state of Espírito Santo had initially announced a rate increase but later backtracked on its decision following the approval of the Tax Reform, thus remaining with the same rates already in force. 

Also noteworthy is that the states of Rio de Janeiro and Sergipe are incorporating the supplementary contribution to the Poverty Alleviation Fund (FECP) into their respective internal rates.

Below are the standard internal ICMS tax rates for 2023 and the applicable rates for 2024 in each state, along with the effective dates of these adjustments.