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Decree 9,904 / 2019 Benefits to Service Exporters
The Decree 9,904 / 2019, published on July 8, makes about 12 thousand service exporters eligible to an Income Tax (IR) rate of 0%. This benefit is applicable on payments to foreign service providers that intermediate transactions between the Brazilian entity and its foreign clients. It is also applicable on the payment of documentation issued outside Brazil.
This measure brings important improvements to Decree 6,761 / 2009. Decree 6,761 / 2009 has reduced the tax rates on amounts paid to resident or domiciled beneficiaries outside Brazil from 15% to 0%, increasing the competitiveness of Brazilian exports and improving the business environment.
According to the Foreign Trade and International Affairs Office of the Ministry of Economy (Secint / ME), companies should save more than R$ 1.5 billion with the latest changes. These changes also brought an equality of benefits between services and goods exporters, since the latter was already subject to the tax reduction.
How to get the benefit
In order to get the benefit, companies simply need to continue registering the service payments related to its exports mentioned above in the Integrated System of International Trade in Services, Intangibles and Other Transactions that Produce Changes in Equity – Siscoserv.
The decree published on July 8 also updates the instructions on how to record transactions related to market research and commercial promotion in trade fairs and exhibitions outside Brazil to promote Brazilian products, services and tourism, so it is in accordance to the government structure established by Law 13,844 from June 18, 2019. As the former Ministries of industry, Finances and Foreign Trade and Services were incorporated by the Ministry of Economy, the previous reporting procedure was revoked, bringing more agility and efficiency to the State.
This Ministry of Economy initiative was the result of the combined work of the Special Secretaries of Foreign Trade and International Affairs, Productivity, Employment and Competitiveness and the Brazilian Internal Revenue Service, having its discussions on the scope of the International Trade in Services Technical Group from the Foreign Trade Chamber of Commerce.