On 18th August 2017, Brazil published Provisional Measure No. 795 (“MP No. 795/2017”) in the official gazette 2017 regarding revised CFC rules for Brazilian organization. Provisional Measure No. 795/2017 which provides for changes in the tax treatment of exploration and development activities in the field of oil or natural gas, as well as establishment of the special tax regime for the oil and gas industry will benefit from a suspension of federal taxes.
The above mentioned tax suspension will be converted into exemption if the goods imported or manufactured with these tax benefits are duly applied on the incentivized activities of the oil and gas industry. The conditions for such conversion will be the subject of further regulation. The provisional measure is applicable till 31st December 2019.
