(11) 3075.2881 (51) 3041.1681 | 3072.2020


The ICMS (Imposto sobre Circulação de Mercadorias e Serviços) is a non-cumulative sales tax, which means the tax amount for a company is discounted by the amount already paid by upstream operations inside the same state or not, according to the established by the Constitution’s Article n° 155, 2nd Paragraph, Section I.

ICMS accrued tax credits

If credits (or payments) exceed debits for the tax, the balance is to be moved to the subsequential month, as a credit, according to the Article n°24, Section III of the Suplementary Law 87/1996;

Transference of positive balance positions of ICMS credits

Particular rules from states, in all cases of generation of accrued tax credits, allow those to be transferred, under certain conditions, to other tax payers inside the same state – Article n°25, 2nd Paragraph, Section II of the Suplementary Law 87/1996.

“The benefit gained from a non-incident output tax may result in a cash flow issue, if the company is not able to reclaim and retrieve paid input taxes through its usual activities”.
Ivo Ricardo Lozekam

Credits are a result of purchases of goods, raw materials and products in which the ICMS has already been paid by the suppliers. However, due to the legal determination, the tax should not be applied at the output, so the tax is undue and a credit is automatically generated.

Well, if there is a non-incidence benefit at the output, why is the tax owing for the same product’s input? That means it’s actually a sole “half benefit”, or in our opinion, the granted benefit that waives the tax at the output may easily become a cash flow issue, if the company is not able to reclaim and retrieve paid input taxes through its usual activities.

Usually, these are the situations that lead to an accrued ICMS credit balance:

In all cases where express restrictions from ICMS rules may apply, in consonance with the 1988 Federal Constitution, compensation rights are guaranteed, considering taxes owing to each operation in which products or services related to transport or communications are traded. That disregarding the nature of the previous operation indeed.

Our firm specializes in recovering, managing and liaise with those credits, as well as provide assistance to turn them into new resources to improve a company’s cash flow, which mostly happens in our main target areas with a previous approval from the respective authorities.

Accrued ICMS credits makeup

The accrued ICMS credits are made up from deferred ICMS tax rates, operations based on a reduced base value or operations and services provided without paying taxes, in all cases whose credit is upkeep, such as exemptions or non-incidences, as well as situations in any tax substituion effect with withheld or deferred taxes in advance.

Accrued credits will be taken as appropriate when their respective amount is launched simultaneaously by:

Accrued credits will be taken as usable when their respective amount is available on the respective current account held by Exchequer authorities.

Accrued credits transference

After accrued tax credits are made up, appropriated and made usable, they can be transferred to firms owned by the same person, inter-related firms or suppliers.

A transference to a supplier will be taken as payment for raw materials, secondary supplies or packaging purchased by the credits’ owner for manufacturing their products.

They can be also transferred in order to pay for packaging or items to be used to store or maintain products in warehouses.

ICMS accrued tax credits can be also transferred to realize partial payments for machinery and equipment acquired by industries, as well as trucks or motorized undercarriage by logistic operators and transport and shipping companies.

São Paulo
Av. Paulista, 1765 - Conj. 72
Bela Vista - São Paulo - SP
CEP 01311-200 Phone: +55 (11) 3075.2881

Porto Alegre
R. Mostardeiro, 366 - Conj. 501
Moinhos de Vento - Porto Alegre - RS
CEP 90430-000 Phone: +55 (51) 3041.1681 | 3072.2020