Bolsonaro sanctions bill amending Kandir’s Law to regulate ICMS

President Jair Bolsonaro. | Photo: Isaac Nóbrega / PR

President Jair Bolsonaro (PL) sanctioned this Wednesday (5) the project which amends the Kandir law to regulate the collection of the tax on the movement of goods and services (ICMS) in transactions between different states. The text was sanctioned without a veto. The new rule defines details such as the taxable fact, the basis for calculating the tax and the type of taxpayer responsible for the payment.

In addition, it is clarified in which situations the State receiving the good or service must collect part of the ICMS, even in cases where the goods pass through other States to the final destination. Under the agreement signed in 2020, the Union will transfer, between 2020 and 2037, 58 billion reais to exporting states to compensate for losses under the Kandir law. Another 4 billion reais from auctions for the Atapu and Sepia pre-salt field will be shared among the states.

Payment will be made in annual and decreasing installments. From 2020 to 2030, states will receive 4 billion reais per year. Between 2031 and 2037, the amount will be reduced by 500 million reais per year, until the last payment. States will have ten days from today, the law’s publication date, to withdraw lawsuits that sought compensation under the Kandir law. With information from Agência Brasil.

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