In Brazil, guidance concerning a tax amnesty program was recently released.
The Brazilian tax authorities on 16 June 2017 issued Normative Instruction 1,711/2017 with respect to the tax amnesty program (Programa Especial de Regularização Tributária—PERT). The new guidance provides that taxpayer applications for tax relief under the PERT regime must be filed by 31 August 2017.
The tax amnesty program allows Brazilian taxpayers to resolve outstanding tax liabilities using a combination of cash and net operating losses (NOLs). For instance, a tax liability may be settled by paying 20% in cash and the remaining 80% through offsetting NOLs. A taxpayer may use the NOLs of one entity or of the consolidated group, provided the NOLs were reported before December 2015.
The program was introduced by Provisional Measure* 783/2017.
*In Brazil, a “Provisional Measure” (Medida Provisória—MP) is an “act” issued by the president, with the authority of law until later approved by Congress. The Provisional Measure is effective as from its date of publication for a 60-day period, but it may be extended for an additional 60-day period (for a total of 120 days) on a request from Congress.
The tax amnesty program (PERT) allows for settlement of:
For more information, contact a tax professional with KPMG’s Latin America Markets Tax practice:
Devon M. Bodoh | +1 (202) 533-5681 | email@example.com
Alfonso A-Pallete | +1 (305) 913 2789 | firstname.lastname@example.org
Murilo Mello | +1 (305) 913 2781 | email@example.com
Luis Wolf Trzcina | +1 (305) 913 2778 | firstname.lastname@example.org
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.