Prior Deposit Requirement Unconstitutional. By a 9 to 1 vote, the Brazilian Supreme Court has finally deemed unconstitutional a legal requirement whereby any taxpayer would have to post a cash deposit equivalent to 30% of any tax assessment in order for its claim against the assessment to be accepted at an appeal level. The so–called […]
Brazilian exporters are legally entitled to use or to transfer the State ICMS tax which is excluded from their exports to foreign countries. This right is granted by Complementary Law 87/96, known as Law Kandir. The amounts corresponding to the ICMS tax exclusion may be assigned to other ICMS taxpayers and may also be used […]
By a vote of 6 to 4 of its eleven judges, the Supreme Court in Brasilia ruled to confirm a previous 2004 decision of a now retired member of the Court against the Federal Government. The Government had asked the Court to overule a Superior Court of Justice judgement which recognized a tax exemption that […]
A Federal Judge in the Federal Regional Court for the First Region (TRF- 1ª Região) in Brasilia issued an order by request of a company headquartered in the State of Minas Gerais, allowing it not to include a state tax (ICMS) on the tax basis of two federal taxes, namely COFINS and PIS. The merits […]
The IPI tax increase of 30 percentage points adopted by the Brazilian government this September of 2011 for some imported vehicles is utterly unconstitutional. The IPI tax is based on two principles: selectivity and essentiality. Discrimination is not allowed on the basis of origin of the product. Importers and their customers in Brazil are therefore entitled to […]
Dr. Claudia Barmann Bernard Rechtsanwältin / Consultantconsultoria@pradogarcia.com.br I. Introduction Globalization and international trade as well as Brazils growing economy have increased companies’ activities in the country including the needs to enforce judgments or arbitral decisions awarded in their favor. Foreign judgments can only be enforced or will have any other effects in Brazil after recognition by the […]
The Brazilian Superior Federal Court (Superior Tribunal de Justiça – STJ) has recently decided that the jurisdiction of Brazilian courts can not be excluded in contracts executed in Brazil even if the contract contains a valid choice of venue and forum selection clause. It should be noted that the Brazilian Supreme Court (Supremo Tribunal Federal – STF) […]
According to the Supreme Court ruling social security tax debt can only be claimed during a period of five years, not ten years as currently practiced by the administration. In its Session on June 11, 2008, the Court declared articles 45 and 46 of the law nº 8.212/91 unconstitutional. Articles 45 and 46 established a time […]
After S&P upgraded Brazil’s credit rating to investment grade on April 30, Fitch Ratings followed on May 29 granting Brazil investment grade status. The upgrades by both agencies recognize the country’s fiscal stability and debt management policies and reflect, amongst other factors, economic growth and the governments control over inflation. S&P raised the country’s long-term […]
The Brazilian Government has launched a new development program named Productive Development Policy (PDP). PDP has three purposes: 1.- To foster investments in 25 strategic sectors and to increase Brazilian exports 2.- To stimulate development in the informatics and in the biotechnology industries 3.- To consolidate the Brazilian leadership in agribusiness, civil aviation and mining PDP […]