This content is from: Brazil

Brazil: Increase of PIS and COFINS rates on the importation of goods

Philippe Jeffrey
Mark Conomy
On January 30 2015, the Brazilian Government issued Provisional Measure 668/2015 (MP 668/2015) regulating the Social Integration Programme (PIS) and the Social Contribution on Billing (COFINS) applied on the importation of goods and services, with effect from May 1 2015.

By way of background, PIS and COFINS are social contributions levied on the importation of goods and services from abroad. A separate PIS/COFINS applies on the gross revenues generated on the provision of goods and services within Brazil, however, this domestic PIS/COFINS is not relevant for the present purposes.

Pursuant to the MP 668/2015, the general PIS and COFINS rates on importation of goods shall increase from 1.65% to 2.1% (PIS) and 7.6% to 9.65% (COFINS) respectively. The combined general rate is therefore increasing from 9.25% to 11.75%.

MP 668/2015 also will increase the rate for PIS and COFINS on importations for certain specific products, including:

  • Pharmaceutical products: PIS-import and COFINS-import rates increased to 2.76% (previously 2.1%) and 13.03% (previously 9.9%) respectively, totaling a combined rate of 15.79% (previously 12%);
  • Perfumes, cosmetics and toiletries: PIS-import and COFINS-import rates increased to 3.52% rate (previously 2.2%) and 16.48% (previously 10.3%) respectively, totaling a combined rate of 20% (previously 12.5%);
  • Machinery and vehicles: PIS-import and COFINS-import rates increased to 2.62% (previously 2%) and 12.57% (previously 9.6%) respectively, totaling a combined rate of 15.19% (previously 11.6%).

Note that PIS and COFINS are also generally applied to the importation of services, however, MP 668/2015 did not increase the rates on such importations (which continue to apply at a combined rate of 9.25%).

A Provisional Measure is a provisionary law issued by the Executive Branch that has the authority of law until it is acted upon by the Brazilian Congress within a prescribed 60-day period. If Congress does not act within this initial period, then the measure expires unless extended for one additional 60-day period.

Brazilian taxpayers importing goods from abroad should consider the impact of MP 668/2015 on their particular circumstances to determine whether the new PIS and COFINS will apply to their importations from May 2015.

Philippe Jeffrey ( and Mark Conomy (, São Paulo

The material on this site is for financial institutions, professional investors and their professional advisers. It is for information only. Please read our Terms and Conditions and Privacy Policy before using the site. All material subject to strictly enforced copyright laws.

© 2021 Euromoney Institutional Investor PLC. For help please see our FAQ.

Instant access to all of our content. Membership Options | 30 Day Trial