The plenary of the Chamber of Deputies approved this Thursday (5/5) the MP 1079/2021. The text extends the deadlines for compliance with the special regime by one year. drawback in suspension and exemption modalities. Through the program, companies are exempt from taxes on the purchase of inputs used in the production of goods destined for export.
Initially, the MP, published in December 2021, provided for the extension for another year of concessionary acts whose final term was 2021. In other words, in practice, until December 2022. Now, with two amendments accepted by the rapporteur of the proposal in the Chamber, the term of the acts that would end in 2022 is also extended for another year. For these, the term is extended to 2023.
Under the drawback rules, in the suspension modality, companies do not pay taxes on the import of inputs used in products destined for the foreign market, but they must export these goods within one year to not lose the benefit. In the exemption modality, they export and then have a period of up to two years to import inputs, with tax exemption, and replenish the stock previously exported.
Due to the pandemic, many companies were unable to meet export deadlines and, as a result, feared having to collect, with interest and late payment fines, the taxes from which they had been exempted through drawback.
Tax lawyer Rebeca Müller, from Figueiredo e Velloso Advogados, states that the extension of deadlines represents a breath of fresh air for exporting companies, since the majority were hit by the Covid-19 pandemic and the economic crisis.
“These companies usually work with very advanced planning, usually annual planning, of how their production and export flow will be. The extension of the deadline is a relief because a large part of the sector was affected by the pandemic,” says Rebeca.
The taxes exempted under the suspension modality are the Import Tax (II); the Tax on Industrialized Products (IPI); PIS and Cofins; the Additional Freight for Renewal of the Merchant Navy (AFRMM) and the ICMS levied on external purchases. In the exemption modality, the only difference is that there is no ICMS exemption.
With approval in the Chamber, the MP will now be analyzed by the Senate, where it must be approved by May 24, otherwise it will lose its validity.