Decree No. 8,015 was published on 05.20.2013, and it modified the Incentive Program to Technological Innovation and Increase of the Production Chain of Automotive Vehicles – INOVAR-AUTO.
Among the modifications, we can emphasize mainly the increase of the number of production steps that must necessarily happen in Brazil in order for the benefit to be enjoyed, and also the modifications of how to use the presumed credits. There are also modifications on the requirements to become a beneficiary.
Concerning this last issue, among other modifications, the acceptance of an enrollment became a competence exclusive to Ministry of Development, Industry and Trade.
This Decree also postponed the validity of the current enrollments to July 31st of this year, when the companies will have to prove that they are complying with the requirements of the program, for the purposes of renovating their register as beneficiaries, which shall have an annual expiration term.
Moreover, this Decree also modified provisions on the concession of presumed IPI credit and increased the list of items considered as investment in research, development and engineering. Furthermore, it provided a better ruling on how to transfer IPI credit balance to other industrial establishments, or establishments deemed as industrial ones, belonging to the same legal entity. If there are no IPI debts (or there is a remaining credit balance after this transfer), the company can request the reimbursement in cash or offset this amount with other taxes.
Additionally, the term to enjoy the IPI reduced rates was extended from July 31, 2016 to December 31, 2017.
If the mandatory requirements provided by the applicable legislation are not complied with, a penalty can be imposed.
(Decree No. 8,015, 05.17.2013, Official Gazette 05.20.2013. Available at: http://www.planalto.gov.br/ccivil_03/_Ato2011-2014/2013/Decreto/D8015.htm. Accessed on May, 2013).