New rule on State Tax on Goods and Services (ICMS) credits may reignite tax war

A new agreement of the National Council of Fiscal Policy (Confaz) on the State Tax on Goods and Services (ICMS) makes optional – and no longer mandatory – the transfer of credits when goods are moved between places of business of the same taxpayer. Although demanded by companies, this flexibility has a price: if the company chooses to keep the credits in the State of origin, it risks not being able to fully use them.

 

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