Rio de Janeiro State exempts tax over donations to combat COVID-19

On May 7, 2020, the State of Rio de Janeiro published Law no. 8,804/20, which granted ITD exemption on donations intended to combat the pandemic caused by COVID-19.

According to the new legislation, the following transactions are exempt from the Tax:

a) Cash donations to the State Health Fund, even if they exceed the amount of BRL 39,937.50 (below this amount, donations were already benefited with exemption), while the “Contingency Plan of the State Health Department” lasts;

b) financial donations for Scientific, Technological and Innovation Institution based in the State of Rio de Janeiro and with the purpose of financing researches to combat COVID-19; and

c) donations of materials and equipment for the treatment or combat of COVID-19 listed in the Law.

It is important to highlight that the Law takes effect in donations made since March 20, when the state of calamity was recognized through the edition of State Decree no. 46.984/20.

Our tax team is available to assist in matters relating to the new legislation of the State of Rio de Janeiro.