TAX REPORT Nº 2

THE SUPREME FEDERAL COURT

General repercussion recognized for the use of ICMS credits in the export process

The Virtual Plenary of the Supreme Federal Court recognized the existence of general repercussion in the constitutional topic dealt with in Extraordinary Appeal (RE) 704815, where the possibility of using ICMS credits on consumer goods utilized in the chain of production of export goods is discussed.  RE 704815 was filed by the State of Santa Catarina against the decision of the Court of Appeals of the State, which admitted the use of the credits in favor of a company.

General repercussion recognized for the taxation of PIS on property rental income

The discussion on the taxation of the Social Integration Program (PIS) on income from property rent, including companies that rent out their own property, had its general repercussion recognized by the Supreme Federal Court (STF) in a Virtual Plenary voting. The topic shall go to trial in the judgment of Extraordinary Appeal (RE) 599658, where the Federal Government questions a decision rendered by the Federal Court of the 3rd Region, which guaranteed to a São Paulo furniture manufacture the exclusion of the rent received for the rental of its own property from the PIS calculation base.

STF recognizes progressive levy of the ITCMD

The STF recognized for majority of votes, in the judgment of RE 596177, the possibility of progressive levy of the Causa Mortis and Donation Tax  - ITCMD, authorizing the State of Rio Grande do Sul to apply tax rates from 1% to 8% in the taxation of transfers of real estate, according to the property value.