Indirect Tax & Customs Duties

Indirect Tax

This practice is focused on manufacturing and VAT (Value Added Tax) taxation, comprising Brazilian IPI (Excise Tax), ICMS (VAT on Sales and Services), PIS (Employees'Profit Participation Program)/PASEP (Civil Servants Savings Program), ISS (Service Tax) and COFINS (Social Contribution on Billlings) taxes, that together represent to a significant collection on the Brazilian GDP.

Due to the fact that Brazilian tax regulations involve different laws and jurisdictions, as well as the maintenance of the tax level effects on goods, commodities and services consumed by the Brazilian population, they are very detailed and complex.

Therefore, determining the effect of these regulations on the production chain requires ongoing tracking and analysis by professionals who are familiar with the challenging and ever-changing indirect tax area.

It is essential to keep abreast with tax compliance rules since even minor errors or omissions can result in significant financial losses.

KPMG offers a comprehensive range of indirect tax services, including:

• review of the tax procedures required by indirect tax legislation;
• review of compliance with complementary regulations, required by indirect tax legislation, including tax documents and books;
• tax planning strategies, applicable to business structuring and/or reorganization in order to reduce or defer tax liabilities;
• professional training provided through Indirect Tax training programs either on a periodic or an ongoing basis;
• tax advice on reviewing the policy and criteria for tax credit maintenance and determination of recoverable taxes;
• management and consistency of financial statements filed with the Internal Revenue Service, providing efficient means of avoiding unnecessary tax payments and preventing unwanted tax contingencies.
• permanent or specific tax advice, on the impact of indirect taxes on usual and/or unusual operations;
• tax advisory support for the implementation for Permanent Asset ICMS Credit Control (CIAP).

Customs Duties - Blue Line

Customs duties are usually due on imported goods and are part of a company’s production and/or sales costs. However, unlike IPI(Excise Tax) and ICMS (VAT on Sales and Services), import duties are not recoverable.

For more information about Indirect taxes and Customs- Blue Line, click here.

Range of services:

• Review of the Customs Valuation Agreement rules.
• Review of applicable import duty rates.
• Tax planning involving deferral of import duties through appropriate warehousing and importation procedures.

Visit the Indirect Tax Global KPMG web site at:
http://www.kpmgtax.com/GO/globalvat/