Approved change in the legislation of the Tax on Industrialized Products (IPI), to determine that the minimum taxable value will use as reference the current price in the municipality where the sending establishment is located

On September 14, 2021, the Brazilian Federal Senate approved Draft Bill No. 2,110/2019, which included article 15-A in the IPI legislation (Law no. 4.502/1964), to determine that the concept of “locality” for purposes of minimum taxable basis should be the current price in the municipality where the sender’s establishment is located. This bill has been sent to the President for subsequent promulgation. The approved legislative change seeks to end the tax controversy on the concept of market, required for the calculation of the minimum taxable value of the IPI.

The initial project determined that it should be considered “the city” where the sender’s establishment is located, but the approved text inserts the term ” municipality”, which encompasses urban and rural areas, besides small villages and non-emancipated towns, unlike the term “city”, that could be interpreted as the urban area only.

We remain at your disposal for any questions on the subjec.