On September 10th, the Brazilian Federal Tax Authorities (“RFB”) published Normative Instruction nº 1975/2020 revoking paragraphs 1 and 2 of art. 170 of Normative Instruction No. 971/2009 that regulated the levy of FUNRURAL on the revenues resulting from indirect exports (carried out by a trading company or exporting company).
The revoked paragraphs were declared unconstitutional by the Federal Supreme Court (“STF”) last February based on the general repercussion (theme 674) of the ADI 4,735 and RE 759,244/SP files. STF decided that tax exemption in the case exports established in Federal Constitution (“CF”) is also applicable to indirect exports as well.
With the publication of Normative Instruction nº 1975/2020, it is expected that the RFB will no longer access taxpayers that do not collect FUNRURAL on the revenues resulting from indirect exports. In any case, we recommend that those who made the undue payment to request the reimbursement of the amount unduly paid in the last 5 years.
We remain at your disposal for clarifications.