State of Rio de Janeiro changes deadlines for companies’ reports under fiscal incentives

The State of Rio de Janeiro, through the publication of Law 7906 (on Mar-15-2018), changed the deadlines for companies that enjoy tax benefits or incentives from Tax Incentive and Transparency Governance System (SISGIFT), an organ of the State Government, present report.

These changes were promulgated in the Law 7495/2016, which determined that the Government of the State of Rio de Janeiro was unable to grant new tax incentives or tax benefits during the tax recovery scheme term.

Follow-up

The State Finance and Planning Secretariat will establish a central body from its structure that should annually (in the second half of each fiscal year) carry out the verification of compliance with the requirements and conditions of ICMS tax incentives or benefits, not general, whose result should be the maintenance or not of beneficiary establishments right to enjoy them.

The evaluation should be carried out through the analysis of companies’ certificates and documentation proving compliance with the requirements and conditions, which should feed reports to be sent to Legislative Assembly of the State of Rio de Janeiro (ALERJ) and to the Court of Auditors of the State of Rio de Janeiro (TCE / RJ).

Governance System

Beneficiary companies should attempt to their documents validity, which the System of Tax Incentive Governance and transparency - SISGIFT will regulate and control.

Important: If the responsible agencies for the issuance of certificates and supporting documents do not do so within 60 days from the filed petition date, this registration document will serve as meeting this requirement for one-year period. It is noteworthy that the annual renewal will not be accepted if the complete documentation is not submitted.

Irregularities

In case of irregularity, the Secretariat may open a thirty days period for companies settle their situation, according to each specific concession law, to continue enjoying the tax benefit or incentive.

In this case, an administrative process shall be opened, respecting:

• the benefit should be preventively suspended, and the process should be judged within a sixty days maximum period if the initial verification reveals that any of the conditions or requirements have not been fulfilled;
• the State Secretariat of Finance and Planning will judge within a maximum period of 120 days processes in which has not been occurred a preventive suspension of the benefit;
• the competent authority should judge appeals against the decision suspending the benefit within sixty days.