The President of Brazil published on 10/25/2018 Decree No. 9.537, which establishes the special regime for the industrialization of goods for the exploration, development and production of oil, natural gas and other fluid hydrocarbons – Repetro-Industrialization.
Repetro-Industrialization allows the company to import or acquire in the domestic market, with suspension of the payment of federal taxes, raw materials, intermediate products and packaging materials to be fully used in the production process of final product for the exploration, development and production of oil, natural gas and other fluid hydrocarbons.
The benefit includes the following taxes: Import Duty; Tax on Industrialized Products – IPI; contribution to the Social Integration Programs and contribution to the Creation of Civil Servant Fund in the import of foreign products or services – PIS/Pasep-Import; contribution to the Social Security Financing due by the importer of foreign goods or services abroad – Cofins-Import; contribution to the Social Integration Programs and contribution to the Creation of Civil Servant Fund – PIS / Pasep; and contribution to the Social Security Financing – Cofins.
The program also offers benefits for the import or acquisition of goods in the domestic market for the industrialization of intermediate product to be directly supplied to companies that use them in the productive process.
The term of suspension of payment of federal taxes for the application of Repetro-Industrialization will be up to one year, renewable for a period not exceeding five years in total.
The company acquiring the final product with suspension of the payment of taxes and failing to send the final product within three years, counted from the date of acquisition in the electronic invoice, is required to collect unpaid taxes as a result of the suspension enjoyed and the legal charges due.
To be entitled to Repetro-Industrialization, interested companies need to qualify with the Brazilian Internal Revenue Service.
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