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    Home»Economy»The law is the site that permits the drawback to purchase services
    Economy

    The law is the site that permits the drawback to purchase services

    Charlotte WhitmoreBy Charlotte WhitmoreSeptember 6, 2022No Comments2 Mins Read
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    The law is the site that permits the drawback to purchase services
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    From 2023, Brazilian exporters will be able to purchase services such as transportation, insurance, handling and storage of goods with taxes suspended. Law 14,440 was passed today (the fifth) who pledges impediment [suspensão de serviços].

    expansion in impediment It was incorporated into the same law that created the country’s Highway Fleet Productivity Increase Program (Renovar). Intends to accelerate the recall of vehicles at the end of their useful life.

    Benefit recognized by the World Trade Organization, and impediment Allows suspension or exemption from Social Integration Program (PIS) and Social Security Financing Contribution (Cofins) on inputs used in goods produced for sale abroad. The new law expanded the mechanism to include exporters who purchase services during production.

    for to have Right to benefit, the exporter must prove that the services are directly and exclusively related to the export or delivery, abroad, of a product that benefits from impediment.

    According to the Ministry of Economy, the new law will contribute to the introduction of Brazilian companies abroad, which will reduce fees and improve the competitiveness of domestic exporters.

    So far, the impediment It was granted only to purchase national and foreign inputs destined for the manufacture of products to be exported. In 2021, the mechanism supported exports by more than $61 billion, according to the Foreign Trade Secretariat. With the new legislation, services will be to have The same treatment as the physical input.

    Competitiveness

    The suspension of PIS/Cofins for services related to the export of goods will cost about R$1.1 billion in 2023. The Ministry of Economy, in Brasilia, reported that the financial cost is foreseen in the draft Budget Law (PLOA) from next year, sent to the National Congress on the 31st .

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    According to the Organization for Economic Co-operation and Development (OECD), services account for 35.7% of the added value of Brazilian exports of manufactured goods.

    According to a joint study by the Ministry of Economy and the United Nations Development Program (UNDP), several members of the G20 – a grouping of the 20 largest economies on the planet – apply similar tax breaks for purchasing services: South Africa, Germany, Saudi Arabia, Argentina, France, Italy Mexico, United Kingdom, Russia and the European Union.

    * Article changed at 5:33 PM to add information

    Charlotte Whitmore

    Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.

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