Pedro Rezek Andery Altran
Lawyer at Marcos Martins Advogados
The State of São Paulo published Law No. 17,293/20, which amends some provisions of the Tax on Circulation of Goods and Services – ICMS and the Tax on Motor Vehicle Ownership – IPVA.
With regard to ICMS, it was made possible to renew the tax benefits that are in force until the date of publication of the law (16/10/2020), as long as they are provided for in the budget legislation and meet the assumptions of LC 101/00.
On the other hand, the state was allowed to reduce the tax benefits granted under agreement No. 42/2016, which authorized the creation of conditions for the enjoyment of ICMS benefits.
The law also authorized the executive branch to return the ICMS levied on products that are part of the basic food basket for low-income families, when purchased by them.
Finally, some of the tax substitution rules were changed, determining that the supplement to the tax withheld in advance must be paid by the substituted taxpayer when:
- I – the value of the final transaction or service with the goods or services is greater than the withholding tax base;
- II – a subsequent increase in the tax burden levied on the final operation or provision of goods or services.
With regard to the IPVA, the Executive Branch was authorized to grant an exemption for a single vehicle to a person with severe or profound physical disabilities who is able to drive a motor vehicle specifically adapted and customized for their individual situation.
The rule also establishes that the vehicle subject to the exemption must be driven by a driver authorized by the beneficiary or their guardian or curator and be inspected annually by DETRAN/SP.
If fraud is detected in obtaining the exemption, the IPVA will be charged with legal increases.
The law firm Marcos Martins Advogados makes its tax team available to answer any questions you may have.
