Clipping of news on Brazilian Culture, Law and Citizenship
01.26.2016
This article was translated by an automatic translation system, and was therefore not reviewed by people.
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IR for international shipments returned to be charged this year.
Tourism sector wanted to cut the rate of 25% to 6%.
Do G1, in Sao Paulo
Even pressured by the tourism sector, the federal government decided to maintain the rate of 25% income tax (IR) which is now levied on remittances to overseas companies to pay for travel services. The decision, published in the Official Gazette on Tuesday (26), however, exempt from collecting the consignments intended for educational and scientific purposes and for expenditure on health coverage.
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The charge - free until the end of last year - raised the cost of companies that provide services outside the country, especially tourist agencies. The collection became effective on January 1, but the tourism sector had asked for a reduction to 6%.
Those who buy travel packages abroad need to pay the tax. This goes for hotels, airline tickets and other travel services. On the other hand, purchases by credit card at international sites and daily payments in foreign hotels are free of tax, according to the IRS. Also do not pay IR bank transfers abroad, hotel bookings made on websites in Brazil and purchase of foreign currency in cash in exchange offices.
In the case of sea and air passages, the collection may vary. Revenue informed the G1que a law allows IR exemption to countries where there is "double taxation" with Brazil on the airlines. The Brazilian company to operate the flight may be exempted in these cases. Otherwise the rate is 15%.
Pressure in the tourism sector
Entities of the tourism sector advocated a return for an agreement that did not work, closed last year with the farm, ensuring that the rate drops to 6%.
The goal was to bring the rate of the IOF (Tax on Financial Operations) - which is currently 6.38% - on purchases abroad with credit card. The tax is collected by the companies at the time of payment.
Marco Ferraz, president of the Brazilian Association of Maritime Cruises (Clia Abremar) - one of the entities that act directly in the negotiations - estimated that the tourism sector would have an immediate 26% drop in sales of 6% if the agreement does not leave
End of the exemption
As of 2010, the IRS began to understand how because of the 25% tax. A law issued shortly after, however, suspended the effects of the charge until 31 December 2015. The tax then went on to automatically enforce earlier this year.
Shortly after the end of the exemption, the industry has appealed against the tax, predicting that the tax would have potential elimitar 185 000 direct job vacancies and 430 indirect in the labor market, with an estimated wage loss of R $ 4.1 billion . The turnover of the tourism sector 9.6% of the national GDP in 2014, according to the latest data of the entities.
According to Ferraz, the rate of 25% will make the agencies be required to pass on costs to consumers. Many of them will have to close, he believes. "The margin is very small and has no way to absorb, especially with the high dollar," added Ferraz.
The law allows companies that provide services abroad, lending this tax, choose to make this payment by credit if there is agreement between Brazil and the foreign country to avoid double taxation - the so-called "reciprocal treatment". "It will not happen, the tax law is different in each country and companies will not reverse it on credit," says Ferraz, the Clia Abremar.
Collection
The president of the Brazilian Tax Planning Institute (BIPT), John Eloi Olenike, the rate of 25% on remittances abroad is high, but does not represent a sizeable share in federal revenues.
"It focuses on a specific sector and on certain types of transactions. It has the same effect as raising the revenue collection rate of income tax on individuals or other increases that the government plans to do this year," exemplifies a tax.
Other taxes
With losses in revenue, the federal government and most states and capitals raised their main taxes this year, according to a survey conducted by the G1. The survey considered only the increases in tax rates - used to calculate how much the taxpayer paid value added tax, in real, than it consumes.
In the case of taxes on goods such as property taxes (levied on vehicles) and property taxes (on property), in many cases there was no change in rates, but with the correction of the value of goods (by inflation or devaluation), the value end tax suffered variations.
The rate of Tax on Goods and Services (ICMS), for example, increased in 20 states and the Federal District. The tribute, state, is one of the fastest weigh in the low-income pocket and concerns considered essential products and services such as telephony and telecommunications, and also superfluous, as cosmetics, alcohol and cigarettes.
Source: G1
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This article was translated by an automatic translation system, and was therefore not reviewed by people.