NEW ICMS CONVENTIONS APPROVED BY CONFAZ

In the Official Gazette of 1.17th.2018, ICMS Conventions approved at the last Extraordinary Meeting of the National Council of Finance Policy (“CONFAZ”) were published, which deal, among other matters, with the National Portal of Tax Substitution Regime and the granting of exemptions from ICMS (State Tax):

• ICMS Agreement No. 1/2018: amends ICMS Agreement No. 18/2017, which established the National Portal of Tax Substitution Regime, to modify Clause Four to state that “The provisions of this agreement do not apply to the States of Acre, Bahia, Espírito Santo, Goiás, Maranhão, Mato Grosso, Minas Gerais, Pará, Rio de Janeiro, and Roraima”;
• ICMS Agreement No. 2/2018: invigorates, until 30.4.2019, the ICMS Agreement No. 46/2013, which authorizes the State of Pernambuco to grant ICMS exemption on the internal exits of corn in grain intended for small agricultural producers, as well as small agro-industries, for use in the respective production process, promoted by the National Supply Company – CONAB and by the Center of Supply and Logistics of Pernambuco – CEASA/PE;
• ICMS Agreement No. 3/2018: authorizes the States and the Federal District to grant exemption and reduction of ICMS calculation basis in import or acquisition operations in the domestic market of permanent goods or merchandise used in oil exploration and production activities and natural gas defined by Law No. 9,478/97, under the specific federal rules that regulate the Special Customs Regime for Export and Import of Goods Destined for Research and Development Activities of Oil and Natural Gas Reserves – REPETRO- SPED, governed by Law 13,586/2017, so that the tax burden is equivalent to 3% (three percent), without appropriation of the corresponding credit;
• ICMS Agreement No. 4/2018: invigorates, until 30.4.2019, the ICMS Agreement No. 85/2004, which authorizes the concession of presumed ICMS credits for the execution of social programs and projects related to the energy policy of the federated units, as well as allows the States of Goiás and Santa Catarina to remit and abrogate credits arising from the application of said Agreement, whose operative events occurred between 1.1.2018 and the first day of the month subsequent to the national ratification of the new Agreement; and
• ICMS Agreement No. 5/2018: authorizes the State of Rio de Janeiro to reduce the ICMS tax base in internal and import operations with new four- and two-wheel motor vehicles, so that its application results in a tax burden never less than 12% (twelve percent), without the need to cancel the credit provided in art. 21, I and II, of Complementary Law No. 87/96.

The aforementioned Conventions depend on internalization by the States in their respective legislation for application.