No episódio de hoje, Beatriz Oliveira recebe Renato Doria, sócio-diretor da CLM Controller e especialista em relações internacionais, para discutir os efeitos da Reforma Tributária nas operações de importação e exportação.
The export taxes are a central issue for any Brazilian company that operates or intends to operate in foreign trade.
Understanding which taxes are levied on export operations, which products are exempt and which tax incentives are available is fundamental to structuring a competitive and legally secure strategy.
Brazil has complex tax legislation in this area, but it also offers a relevant set of tax benefits which, when properly used, reduce costs and increase the margin of international operations. In this article, you'll find a technical and straightforward guide on the subject.
What is export tax?
O export tax is a Brazilian federal tax levied on the exit of national or nationalized products from Brazilian territory to foreign countries. Its acronym is IE and it is provided for in article 153 of the 1988 Federal Constitution.
Unlike most taxes, the IE has a predominantly extrafiscal function, i.e. its main objective is not to raise revenue, but to regulate the domestic supply of certain products considered strategic for the national economy.
For this reason, its rate can be changed by decree of the Executive Branch, without the need for approval by the National Congress, which gives the government greater agility to adjust trade policy according to market needs.
What export taxes are for
The export taxes play a regulatory role within Brazilian economic policy.
By making it more expensive for certain products to go abroad, the government uses this mechanism to guarantee domestic supply, protect strategic productive sectors and control the trade balance at times of pressure on domestic supply.
In products such as leather, weapons and cigarettes, for example, export taxes act as a selective barrier that discourages the excessive outflow of these goods.
In addition, export taxes can be used as a negotiating tool in international trade agreements, directly influencing the competitiveness of Brazilian products on the global market and the pricing decisions of exporting companies.
Products exempt from export taxes in Brazil
Brazilian legislation adopts, as a general rule, the exemption of exports, which means that most of the products exported by Brazil are not subject to the payment of taxes. export taxes.
This policy aims to make national products more competitive on the international market.
Among the products and categories that are usually exempt or have zero export tax rates are manufactured and semi-manufactured products in general, agricultural products such as soya, corn, coffee, cotton and sugar, and industrialized products such as footwear and textiles.
Machinery and equipment, processed agribusiness products such as meat, juices and vegetable oils, minerals such as iron ore when exported without relevant strategic processing, technology and software products developed in Brazil, and services provided to customers abroad, which also benefit from exemption from various taxes.
It's worth noting that the exemption is not just limited to export tax. In practice, Brazilian exports are also largely exempt from ICMS and IPI, PIS and Cofins, This represents a significant tax benefit for companies operating in foreign trade.
The correct tax classification of products, using the Mercosur Common Nomenclature (NCM), is decisive in identifying whether or not the operation is subject to any specific taxation.
What are the export taxes?
IE - Export Tax
The IE is a federal tax levied directly on goods leaving national territory. Its rate varies according to the product and can be altered by executive decree.
In practice, only a restricted list of products are subject to IE, such as arms, ammunition, tobacco, hides and skins. For the vast majority of Brazilian exports, the IE rate is zero.
ICMS
ICMS, a state tax that is normally levied on the movement of goods, is constitutionally immune in the case of exports of industrialized products and, since Complementary Law 87/1996, also on primary and semi-finished products.
This exemption is one of the main tax benefits for exports and ICMS-related export taxes are practically non-existent in this context, apart from very specific exceptions provided for in state legislation.
IPI, PIS and Cofins
IPI is also exempt on exports of industrialized products, as provided for in the Federal Constitution. PIS and Cofins, on the other hand, are exempt on export revenues, in accordance with current federal legislation.
These export taxes, or rather their absence, represent a significant competitive advantage, as they significantly reduce the tax burden on exporting companies compared to operations carried out on the domestic market.
IOF - Exchange
The IOF-Exchange is levied on exchange transactions carried out when foreign currency is brought in from exports.
Currently, the tax rate for export exchange transactions is zero, which means that converting the amounts received into foreign currency does not generate an additional tax cost for the exporter. This benefit contributes to the competitiveness of Brazilian companies in international trade.
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How to calculate your company's export taxes
Calculating export taxes begins with the correct classification of the product in the Mercosur Common Nomenclature (NCM), which defines which taxes are levied on the operation and at what rates.
In practice, most Brazilian exports have a zero rate of IE, IPI, ICMS, PIS and Cofins, but this needs to be checked on a case-by-case basis.
Consider a company that exports tanned bovine hides and skins with NCM 4104.11.00, worth R$ 500,000. This product is subject to Export Tax at a rate of 9%. Here's what the assessment would look like:
| Tribute | Calculation Basis | Rate | Value (R$) | Observation |
|---|---|---|---|---|
| IE | 500.000,00 | 9% | 45.000,00 | Incide sobre exportação desse produto |
| IPI | - | - | 0.00 | Imune nas exportações |
| ICMS | - | - | 0.00 | Imune constitucionalmente |
| PIS | - | - | 0.00 | Isento sobre receitas de exportação |
| Cofins | - | - | 0.00 | Isento sobre receitas de exportação |
| IOF-Câmbio | - | 0% | 0.00 | Alíquota zero |
| Total | - | - | 45.000,00 | Carga tributária total da exportação |
In this case, IE is the only tax actually levied, but it already has a significant impact on the margin of the operation. Products such as hides, skins, weapons and tobacco are part of a restricted list subject to IE precisely to discourage the excessive exit of these goods from the domestic market.
Rodrigo Ribeiro – Diretor na CLM Controller
That's why knowing the correct tax classification for your product and having specialized technical support is essential to avoid surprises and plan the operation safely.
What are the tax incentives and tax exemptions for exports?
Brazil offers a structured set of tax incentives designed to stimulate exports and make national products more competitive on the international market.
Knowing and using these mechanisms correctly can represent a significant reduction in the company's tax burden.
Drawback
Drawback is one of the most important special customs regimes for exporters. It allows for the suspension or exemption of federal taxes - such as II, IPI, PIS, Cofins and AFRMM - on imported inputs, raw materials and packaging that will be used in the manufacture of products destined for export.
There are three types: suspension, exemption and refund. Suspension Drawback is the most widely used, as it allows inputs to be purchased without the immediate payment of taxes, subject to the goods being shipped abroad later.
This regime is especially advantageous for exporting industries that rely on imported components in their production process.
Special customs procedure for temporary export
This regime allows national or nationalized products to leave the country temporarily without paying export taxes, as long as they return to Brazil within the time limit set by the Federal Revenue Service.
It is widely used at international fairs, exhibitions, events and repair or improvement operations abroad. When returning to the country, the products can also benefit from exemption or reduction of Import Tax, depending on the conditions of the operation.
Recof - Special customs regime for industrial warehouses
Recof allows industrial companies to import goods with tax suspension for use in the production process, as long as part of the production is destined for export.
It is a more complex regime and requires authorization from the IRS, but it offers significant tax advantages for larger industries with consolidated international operations.
PIS and Cofins exemption on export revenues
Income from exports is exempt from PIS and Cofins, as provided for in federal legislation.
The PIS and Cofins credits generated by the acquisition of inputs used in the production of exported goods can be used by the exporter, either to offset against other federal taxes or for cash reimbursement with the Federal Revenue Service.
This mechanism for using credits is a critical point that requires specialized technical monitoring to ensure that the company does not leave money on the table.
Manaus Free Trade Zone and export processing zones (EPZ)
Companies located in Export Processing Zones or in Manaus Free Trade Zone can enjoy differentiated tax regimes, with exemptions and suspensions from federal and state taxes.
The EPZs were created precisely to attract investment in the production of goods for export, offering a favorable tax environment and adequate logistical infrastructure.
How to find out if your company's exports are exempt or how much tax you pay
Accurately determining the tax burden of a company's export operations requires a technical analysis that goes beyond consulting generic tables.
The starting point is the correct classification of products in the Mercosur Common Nomenclature (NCM), as this determines which export taxes are levied on each good and which rates apply.
Based on this classification, it is possible to check the list of products subject to IE, identify any state ICMS restrictions and assess whether the company qualifies for special schemes such as Drawback.
In addition to the tax classification, factors such as the destination of the goods, the type of operation and the company's corporate structure also influence the applicable tax treatment.
That's why enlisting the support of a tax consultancy specializing in foreign trade is not only advisable, it's essential for ensuring legal compliance, avoiding assessments and, at the same time, making the most of the tax benefits available.
CLM Controller: the strategic partner for exporting companies
Navigating foreign trade tax legislation requires in-depth technical knowledge, constant updating and a strategic vision that goes beyond simply complying with tax obligations.
A CLM Controller brings these skills together in a single office, with more than 40 years of experience and a team of more than 100 specialists ready to serve companies operating in the international market.
CLM offers complete Tax consultancy, Tax Planning and Accounting Outsourcing aimed at exporting companies, helping to identify which export taxes apply to each operation, which special regimes the company can adopt and how to structure the operation to maximize the tax incentives available.
With each client having access to an exclusive account manager and a consultative and strategic approach, CLM goes beyond traditional accounting, acting as a true business partner.
Real Profit Companies and Presumed that operate with exports find themselves in the CLM Controller the technical support and legal certainty needed to grow in the international market with efficiency and compliance.
If your company exports or plans to export, talk to an expert of CLM Controller and request a strategic diagnosis for your operation.
