This content is from: Brazil

Brazil: Tax incentives related to the Olympic and Paralympic Games

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 ( & Philippe Jeffrey (
Tel: +55 11 3674 2271

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