Decree 46,793/19 Offers Tax Benefits to the Steel Industry

The Government of Rio de Janeiro published on October 16 the Decree 46,793/19, which “establishes the differentiated taxation regime for industries of the steel sector” located in the State of Rio de Janeiro.
The regime provides the following tax benefits:
– Deemed tax credit in domestic and interstate sales operations, so that the tax burden is equivalent to 3% (three percent), preventing the use of other credits;
– deferral of ICMS in some operations, such as: (i) import of equipment without similar produced in the State of Rio de Janeiro, (ii) acquisitions for fixed assets, (iii) import of inputs for industrial process without similar produced in the State of Rio de Janeiro, and (iv) internal acquisition of inputs and packaging for the industrial process;
– deferral of ICMS on manufacturing carried out by an industrial establishment located in the State of Rio de Janeiro, for the moment when the subsequent operations performed by the ordering party occur; and
– reduction of the ICMS tax basis for 12% (twelve percent) on the domestic sales of industrialized steel.
It is important to note that the 3% (three percent) rate mentioned above does not apply to steel mills and that it already includes the 2% portion for the FECP.
The regime should be still regulated by the act of the State Secretary of Finance.