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“Reintegra”: tax benefit was reduced from 2% to 0,1% for 2018

Published on May 30, 2018 and rectified on June 4th, 2018 the Decree nº 9,393 significantly reduced the Reintegra rate to 0.1 percent as of June 1, compared to a 2 percent level that had been set for the entire year 2018, reducing the margin of the benefit of exoneration of the export.

As a result of the government's loss of diesel taxes, this additional measure was applied, among other measures, to compensate the reduction in taxes.

Therefore, this measure will result in an increase in the tax structure for exporters, since the Special Regime for the Reintegration of Taxes for Exporting Companies (Reintegra) was instituted with the objective of reintegrating amounts referring to residual tax costs in the production chains of exporting companies, since 2011, through Provisional Measure nº 540/2011, which become Law 12,546 / 2011.

In the first stage, the aim is to increase the competitiveness of national industry by encouraging technological innovation and value added. Among other measures foreseen in the Greater Brazil Plan - PBM, the “Reintegra” aims to encourage the national industry through the tax exemption of exports, thus preventing the export of taxes.

It should be clarified that the original amount of the benefit consisting of 3% of exports may be used in two ways, one to offset federal taxes administered by the Brazilian Internal Revenue Service, such as IPI, PIS, COFINS, IRRF, IRPJ, CSLL, IOF, and the second, to request your compensation, in order to recover the tax residues from the exporter's production chain.

Our team is available to discuss the new rules, as well as about alternatives to mitigate the impact of such measure for the Brazilian exporters.

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