In average, imported products arrive in Brazil with costs increased by a 100%, given that 30% of those are paid in taxes while entering the country.
For companies which operate with trade and imports, there are several issues that influence on taxes in order to ‘nationalize’ foreign products. Because of that, using a tax planning that allows a smart and efficient import process, looking for increasing competitiveness by using the most of benefits foretold by law is crucial.
The constitutional principle of non-cumulativeness assures the local companies credits on taxes paid while purchasing inputs or raw materials, which provide advantages on reselling them or selling manufactured products. That prevents organizations to absorb those costs, and repass them to the end-user instead. The principle can be applied for both local or imported goods.
Laws applied in some states allow ICMS refundable tax credits to be traded, which gives companies an opportunity to import good with extra advantages. In other states, that can be managed indirectly by outsourcing activities subject to taxation, imports included.
Besides all strategic care to be taken by trading companies’ managers, tax know-how for traders in crucial, especially for entrepreneurs and those who occupy decision-making positions, otherwise all possible gains from the operations can be wasted by a tax planning which is not considering all necessary tax aspects.
We usually propose our clients experimental operations, in which importers can measure gains from tax and accounting aspects of a first “trial”operation.
R. Mostardeiro, 366 - Conj. 501
Moinhos de Vento - Porto Alegre - RS
CEP 90430-000 Phone: +55 (51) 3041.1681 | 3072.2020