Furthermore, the current model has different rules on the appropriation of credits for inputs used in production. This causes tax residues to remain throughout the sales chain – even for goods that are exempt from taxation, as in the case of exports – which results in low competitiveness of our products in the international market.
Another aspect that should be beneficial is the elimination of legal discussions that deal with inputs and crediting. This is because crediting in transactions in which the taxpayer is the purchaser of material or immaterial goods, except for transactions characterized as personal use or consumption by supplementary law, tends to overcome the discussion on the essentiality of inputs as a factor generating PIS/COFINS credit.
In the current model, the option of considering lebanon telegram data the taxpayer's place of business as the determining factor for defining the active subject of ICMS and, consequently, the applicable rate causes a series of distortions and makes it difficult to comply with accessory and main obligations, in addition to resulting in federative conflicts – the so-called tax war.
As a result of the change proposed by the Tax Reform, the collection will be allocated to the place where the good or service is consumed. This measure allows exports to be completely exempted, increasing the competitiveness of Brazilian products in the foreign market. Another positive result is the obstacle to conflicts between states, as mentioned above.
Some questions still unclear
The initial proposal is that the new taxes will be determined by three types of rates: the standard rate (as a reference), the reduced rate (with a 60% reduction in the value of the standard rate) and the zero rate.
In principle, the industry sector would not be covered by tax benefits or differentiated treatments, as appears to be the case for the health, education, public transport services, agriculture, culture, and other sectors.
Despite this, the text opens up the possibility of regulation, via Complementary Law, for the creation of specific taxation regimes for certain sectors, aiming to meet the peculiarities and needs of each economic activity. The industrial sector is not mentioned.
One of the sectors that will receive a specific taxation regime is fuels and lubricants. In this case, the tax will be levied only once on these products, regardless of the purpose for which they are used.
Another segment covered is financial services, real estate operations, health assistance plans and forecasting competitions.
Direct public administration, autonomous bodies and public foundations will also be covered by a specific taxation regime. This means that the operations contracted by them will have a differentiated form of taxation, which will take into account the peculiarities of the public sector.
Cooperative societies, in turn, will have an optional tax regime. This regime aims to ensure the competitiveness of these organizations, respecting the principles of free competition and tax equality. Thus, cooperatives will be able to choose whether to adhere to the general regime or opt for the specific regime that best suits their activities and needs.