The Brazilian Federal Senate suspended, on 03/08/2017, the legal provision that included unconditional discounts in the calculation basis of the Tax on Industrialized Products (IPI), as previously provided under § 2 of art. 14 of Law No. 4,502 of 1964.
This suspension occurred more than two years after a final decision ruled by the Federal Supreme Court (STF) in Extraordinary Appeal no. 567.935, which unanimously declared unconstitutional the inclusion of the amount of unconditional discounts in the IPI calculation base, as this provision was added by ordinary law and, according to article 146, item III, letter 'a', of the federal Constitution, such change could have only been able by means of Complementary Law.
It is worth mentioning that such unconditional rebates are rebates granted by sellers without the need for the buyer to perform any subsequent act of purchase to qualify for this benefit. It is therefore incoherent to define the basis for calculating the tax as the value of the transaction and, at the same time, to establish that the unconditional rebates are part of such calculation basis, to the extent that the value of the transaction is exactly the price established in the purchase contract.