Cosit No. 13 and tax incentives
By Pedro C. Amarante, Paulo Navarro and Renato Nunes.
Published on June 19, 2019.
The Federal Revenue Service of Brazil, through the General Coordination of Taxation(Cosit),launched Query Solution No. 13, bringing the understanding of this Body regarding the decision of the Supreme Court (RE no. 574.706/PR), which determined the exclusion icms of the basis for calculating the Contribution to PIS and Cofins.
Cosit 13, in one of its various items, provides that “the portion of the ICMS paid or collected from the period is the one to be excluded from the calculation base of contributions”, which would be the corresponding to the ICMS calculated “at the end of each monthly clearance period of the CI MS, also considered other amounts for debt and credit adjustments, as well as specific deductions, resulting from benefits and/or tax incentives eventually granted by states or the Federal District.”
As we know, one of the most discussed problems regarding Cosit 13 is that, due to the above forecast, the ICMS to be excluded from the calculation bases of the Contribution to PIS and Cofinsby taxpayers who have a court decision recognizing such a right, it is called “ICMS to Collect”. This is the value of the ICMS to be actually paid by the taxpayer, not the incident tax on transactions relating to the movement of goods and on the provision of interstate and intermunicipal transport services and communication, the amount of which corresponds to how much “highlighted in the note”.
See the full article in: Economic Value