The federal government cuts the IPI tax rate in up to 25%

Through the Presidential Decree No. 10,979/2022, the federal government determined a cut on IPI (Imposto sobre Produtos Industrializados, or Tax on Manufactured Products) for several items. Disclosed as an incentive to the country’s economic recovery, the cut varies from 18.5% to 25%.

With immediate validity, this measure applies to operations taken place since February 25, 2022.

It is recommended that companies keep an eye on tax-related documents issued and received from third parties as of the aforementioned date so that the correct tax rate application is verified and, when necessary, any of the due adjustments are made.

IPI

IPI is a federal tax that is due on national, and foreigner industrialized goods. The assessment period is monthly.

Whenever the merchandise leaves the factories, IPI is collected. For imported goods, the collection is made when the goods are disembarked in the country. Any change in this tax rate results in an increase or a decrease in the final price of any product.

Tax-related assistance

The specialist from DPC’s tax team assist companies in the complying with tax obligations. Count on the operational and strategic support of the team DPC: dpc@dpc.com.br.