Law n. 12.780 was published on January 10, 2013, and it provides for the tax measures applicable to operations directly related to the organization or holding of the 2016 Olympic and Para-Olympic Games. In summary, one can say that the rule brought as benefit the exemption or release of various taxes applicable to property, services and goods related to the organization or holding of the events.

Specifically, the law granted exemption of the IPI, II, PIS/COFINS applicable to the importation, expressly prohibiting the use of PIS/COFINS

credits in this case. It should be pointed out that such exemption does not apply to the importation of those durable goods that may be admitted under the Temporary Admission Customs Regime, with suspension of the tax payments.

Additionally, it granted release of the taxes applicable to the operations carried out by the International Olympic Committee (IOC) and by the companies associated with it in Brazil (IRPJ, IRRF, IOF, IPI, CSLL and PIS/COFINS) and abroad (basically the IRRF, IOF, PIS/COFINS), the use of PIS/COFINS credits being also prohibited in this case.

It is also worth mentioning also the release of indirect taxes upon the acquisitions in the domestic market. In this event, the legislation brings payment exemption of the IPI applicable to the non-durable products directly for use or consumption to carry out the events. It should be clarified that the IPI exemption is valid only for companies previously licensed or appointed by the IOC or RIO 16 and qualified by the Brazilian Revenue Service.

It should be emphasized that there is no exemption for durable goods, but rather the benefit of suspension of the tax, which may be converted into exemption if the goods are used in the events, or in up to 180 days from the tax event, which may take place between January 1st, 2013 and December 31st, 2017, if they are re-exported abroad or donated to the Federation or other beneficiaries (charity entities, public law legal entities or not-for-profit sports entities).

Finally, suspension of the PIS/COFINS applies to sales in the domestic market. If the use of the goods or services in activities related to the games is proved, such suspension will be converted into exemption, the use of the PIS/COFINS credits consequent of such operation being prohibited. In this case, the company´s prior qualification is required to enjoy the benefit.

(Law n. 12.780, Jan. 09. 2013, DOU-I, Jan. 10.2013. Available at:

<http://www.planalto.gov.br/CCIVIL_03/_Ato2011-2014/2013/Law/L12780.htm>. Access in: Jan. 2013).