Brazil: Tax incentives related to the Olympic and Paralympic Games

International Tax Review is part of Legal Benchmarking Limited, 1-2 Paris Garden, London, SE1 8ND

Copyright © Legal Benchmarking Limited and its affiliated companies 2025

Accessibility | Terms of Use | Privacy Policy | Modern Slavery Statement

Brazil: Tax incentives related to the Olympic and Paralympic Games

weiss.jpg

jeffrey.jpg

Nélio Weiss


Philippe Jeffrey

On October 10 2012, the Brazilian government published Provisional Measure (PM) 584, providing for tax measures applicable to operations involving the organisation or realisation of events directly related to the 2016 Olympic and Paralympic Games to be held in Rio de Janeiro. The PM provides for the exemption of federal taxes due on import of goods or services used exclusively in activities directly related to the organisation or realisation of both events, such as: trophies, medals, plaques, statuettes, pins and badges, flags and other commemorative objects; promotional material, flyers and the like; and other similar non-durable material (up to one year). Taxes included in this exemption are the II (import tax); IPI (excise duty) over imports due on customs clearance; PIS/COFINS-Import; among other charges and duties.

Non-resident individuals entering Brazil with a temporary visa, employed or contracted by the above organisations to carry out activities related to the events' organisation, are exempt of individual income tax (IRPF).

Furthermore, the International Olympic Committee (IOC) and RIO 2016 (Organising Committee) are exempt from a number of federal taxes, such as the IRPJ (corporate income tax), the IRRF (withholding income tax), the IOF (tax on financial transactions), the IPI (excise tax), the social contribution on net profits (CSLL), the PIS/COFINS-Import and the contribution for the intervention in the economic domain (CIDE). With regards to RIO 2016, the IRRF exemption applies to income paid, credited, delivered, used or remitted by or for this entity, regarding the supply of goods or services.

The PM also provides for the exemption of IPI and PIS/COFINS in the acquisition of goods and services in the local market used in the organisation or realisation of the events.

To enjoy these benefits, the IOC and associated companies, the Court of Arbitration for Sport (CAS), the World Anti-Doping Agency (WADA), National Olympic Committees, International Sporting Federations, media companies and accredited transmitters, sponsors, IOC and RIO 2016 service providers must be established in Brazil if they commercialise products or services in Brazil or employ individuals with or without a formal employment relationship, even if only for organising or realising the games.

The IOC and RIO 2016 shall provide a list to the Brazilian Revenue Service including the individuals and legal entities that shall be entitled to the tax benefits mentioned above. Further regulation is expected in due course.

As a general rule, a PM is issued by the Executive Branch of the Federal Government and has the effect of law while it is analysed by the Brazilian Congress, that can approve (with amendments or not) or reject it. This process should take place within a 60-day period, a term that may be extended for an additional 60-day period. If Congress does not act within this 120-day period, the PM expires and loses effectiveness. If approved without amendments, the abovementioned measures shall apply to taxable events occurring from January 1 2013 to December 31 2017.

Nélio Weiss (nelio.weiss@br.pwc.com) & Philippe Jeffrey (philippe.jeffrey@br.pwc.com)

PwC

Tel: +55 11 3674 2271

Website: www.pwc.com

Return to the BRICS tax cooperation special focus

more across site & shared bottom lb ros

More from across our site

Luxembourg’s reform agenda continues at pace in 2025, with targeted measures for start-ups and alternative investment funds
Veteran Elizabeth Arrendale will lead the new advisory practice, which will support clients with M&A tax structuring, post-deal integration, and more
MAP cases keep increasing, and cases closed aren’t keeping pace with the number started, the OECD’s Sriram Govind also told an ITR summit
Nobody likes paperwork or paying money, but the assertion that legal accreditation doesn’t offer value to firms and clients alike is false
Ryan hopes the buyout will help it expand into Asia and the Middle East; in other news, three German finance ministers have called for a suspension of pillar two
SKAT, which was represented by Pinsent Masons, had accused Sanjay Shah and other defendants of fraudulent dividend tax refund claims
TP managers must be able to explain technical issues in simple terms, ITR’s European Transfer Pricing Forum heard
Prudential had challenged HMRC over VAT group relief; in other news, Donald Trump unveiled timber and wood tariffs, and the European Commission published a ViDA implementation strategy
Australia’s CbCR rules have ‘widespread support’ and do not put American companies at a competitive disadvantage, the FACT Coalition said
Baker McKenzie advised two of the member firms involved, while several advisers provided transaction counsel to US-based Grant Thornton Advisors
Gift this article