State Law # 8,926/2020: only legislative branch originated act shall create ICMS tax benefits

The Rio de Janeiro State enacted yesterday State Law # 8,926/2020, prohibiting the creation of ICMS (state VAT) tax incentives through infralegal rules (e.g. executive branch decrees or state treasury office resolutions).

State Law # 8,926/2020 states that ICMS tax incentives must be created through acts originated from the Legislative Branch (e.g. a law on a strict sense), including but not limited to the incorporation of CONFAZ ICMS Agreements (“Convênios” ) into local law.

This law also determines that the definition of which goods shall be subject to the ICMS tax substitution regime (ICMS-ST) must be provided by Law (strict sense).

In this sense, the new law states that the value-added margins (MVA) of goods subject to ICMS-ST regime must be fixed through executive decree, which can only be enacted after the matter is discussed at a public hearing held by Legislative Assembly of Rio de Janeiro State.  

State Law # 8,926/2020 entered into force on July 9th, 2020, date of its publication.