Law n. 14.946 was published on April 19, 2013 by the State of Pernambuco providing that ICMS tax benefits in interstate operations with assets or goods imported from abroad subject to the four per cent (4%) interstate rate are no longer applicable.

This provision does not apply to benefits granted by ICMS Covenants previously approved by the States that resulted in a tax burden lower than 4% on December 31st, 2012, or to exemption benefits.

Moreover, the presumed credit benefits or any other tax benefits that do not follow the provisions of Federal Complementary Law n. 24 of 1975, are expressly revoked.

This revocation does not apply to exemptions or to tax benefits calculated on the tax debt balance, registered directly in the field “Deductions” of the ICMS Assessment Records (Registro de Apuração do ICMS – RAICMS).

Finally, if the presumed credit is comprised in the revocation provision, the company is entitled to register the respective credits on acquisitions.

(State Law /PE n. 14.946, Apr. 19, 2013, DO PE, Apr. 20, 2013).