On December 30, 2015, State Law No. 7.183/2015 was published in the Official Gazette. The law establishes a new ICMS taxation system for the exploration and production of oil.

In accordance with Article 2 of the Law, the ICMS tax collection will occur immediately after the oil extraction, when the product passes through the Production Measuring Points.

Similar in scope to Law No. 4117/2003 - "Lei Noel", Law No. 7.183/2015 is an attempt by the State of Rio de Janeiro to increase its tax revenues related to oil extraction. This is a departure from previous ICMS collection rules because the tax will be levied within the State of origin.

Among other provisions, it is important to highlight that Law No. 7.183/2015 establishes the trader, the industry, the producer and the extractor as the taxpayer, regardless of whether or not they be the direct concessionaire. It also defines the tax rate at 18%.

The aforementioned Law will come into force 90 (ninety) days after its publication.