Changes have been made to a proposed tax amnesty program that, if finalized, would allow Brazilian taxpayers to resolve outstanding tax liabilities using a combination of cash and net operating losses (NOLs). The program was originally 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.
Provisional Measure (MP 783) was intended to create a special tax amnesty program (Programa Especial de Regularização Tributária—PERT). Following recent action in Brazil’s Congress, there is now a draft law of conversion (Projeto de Lei de Conversão) that the Chamber of Deputies and the Sanado would consider and, if approved, would then be submitted to the president for either his signing or veto.
During the legislative process, additional taxpayer benefits were added to the PERT program, including the following measures:
Read an August 2017 report (Portuguese) prepared by the KPMG member firm in Brazil
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