On 08.08.2013, Decree No. 44,318 was published amending Book II of the ICMS Rulings of the State of Rio de Janeiro, which has provisions on the tax substitution regime.

It provides that this regime also applies to the difference between internal and interstate rates for products destined for use and consumption or fixed asset. The calculation basis shall be the price of the transaction, including freight, insurance, taxes and other charges transferred or charged from the purchaser.

Besides that, it included a new provision determining that when freight, insurance or another charge cannot be included in the taxable basis, the collection of tax concerning these amounts shall be made later by the purchaser, multiplied by the value-added margins.

Finally, Decree No. 43,922/12 was amended to comprise a reduction of taxable basis for cosmetics in intrastate transactions to another ICMS taxpayer, so the tax burden shall be of 13% of the value of the sale, with 1% destined to the State Fund against Poverty.

(State Decree/RJ No. 44,318, 08.07.2013, Official Gazette/RJ 08.08.2013. Available at: http://www.fazenda.rj.gov.br/sefaz/faces/legislacao/legislacao-estadual-navigation/coluna1/menu_legislacao_decretos/Decretos-Tributaria?_afrLoop=56921431676000&datasource=UCMServer%23dDocName%3A4020023&_adf.ctrl-state=shkvlysev_187. Accessed in August, 2013).