Brazil: PIS/COFINS-Importation and PIS/COFINS on Financial Revenues

In connection with a recent statement to increase revenue collection, the Brazilian Government published new rules related to PIS/COFINS. The main points are:

1. Provisional Measure (PM) #668/2015 (published on 30 January 2015 and in force as of 1 May 2015) increased PIS and COFINS importation rates. Such a measure aims to compensate the Supreme Court decision to exclude the Brazilian VAT-type tax (ICMS) from the calculation basis of referred levies.

It should be highlighted that PM is an instrument with the force of law adopted in relevant and urgent cases. The validity period is sixty days, extendable once for an equal period. It takes immediate effect, but must be approved by the National Congress to be converted into law.

New Rates










Pharmaceutical products (1)



Perfurmery and personal care and hygiene products (2)



Machinery and vehicles (3)



New pneumatic tyres and inner tubes of rubber



Auto parts (4)



Paper (5)



(1) Classified under the code 30.01, 30.03, except 3003.90.56, 30.04, 3004.90.46, items 3002.10.2, 3002.10.3, 3002.20.2, 3006.30.1 e 3006.30.2 and codes 3002.90.20, 3002.90.92, 3002.90.99, 3005.10.10(2) Classified under the code 3303.00 a 33.07, except 33.06; and codes 3401.11.90, except 3401.11.90 i.e. 01; 3401.20.10; and 9603.21.00 
Classified under the code 84.29, 8432.40.00, 8432.80.00, 8433.20, 8433.30.00, 8433.40.00, 8433.5, 87.01, 87.02, 87.03, 87.04, 87.05 e 87.06,
of Mercosur´s (3) Common Nomenclature – NCM
(4) Related to Attachment I and II of Law #10,485/2002, except when performed by the legal entity manufacturer of machinery and vehicles listed in article of the Law
(5) Immune to tax pursuant to article 150, section VI, d, of the Federal Constitution, except those referred to in item IV of paragraph 12 of this article, when destined to the print periodicals


 COFINS-Importation Credit on the additional of 1%

The additional applied in the case of importation of goods classified on IPI List (TIPI), Attachment I of Law #12,546/2011 does not generate the right to discount COFINS-Importation credit.
Discussions about the non-cumulative concept shall be maintained, and the constitutionality of this provision will probably be challenged in court.


2. Decree #8,426/2014 (published in the Brazilian Official Gazette on 1 April 2015, and in force as of 1 July 2015) established the rate of 0.65% and 4%, respectively, of PIS and COFINS on financial revenue, except Interest on Equity, earned by companies subjected to the non-cumulative regime. Decree #5,442, which in 2005 reduced the rate of contributions under discussion to zero in 2005, was revoked.

These rates are applicable to even those companies whose revenues are not totally subjected to the non-cumulative regime. 

It is worth mentioning that Decree #8,426 does not provide rules for the credit calculation of PIS and COFINS on financial revenue.

There has been an argument put forward that the validity of Decree #8,426/2015 can be legally questioned, due to the independence of the powers - Executive, Legislative and Judiciary – insofar as Law #10,865/04 authorises the Executive to reduce or restore PIS and COFINS rates on financial income (the constitutionality of this Law can be argued).




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