Mauri Bornia and Gabriel Caldiron Rezende of Machado Associados discuss the legislative changes made by the state of São Paulo to the State VAT (ICMS) on transactions with electricity in the free market.
Brazil's Supreme Court concludes discussion on the inclusion of ICMS in the PIS/COFINS taxable basis internationaltaxreview.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from internationaltaxreview.com Daily Mail and Mail on Sunday newspapers.
Withholding of the municipal service tax is unconstitutional
The municipal service tax (ISS) has always been the subject of severe controversies related to the municipality to where it should be paid.
This is because, as a rule, the ISS is payable to the municipality where the establishment providing the service is located, regardless of where the service receiver is located. Based on this, several municipalities granted ISS tax benefits, which resulted in a lower tax burden, to attract service providers.
Seeking tax reduction, but without setting up a new establishment, it became common for malicious companies to simulate their existence in municipalities with lower ISS, giving rise to several controversies when a party engaged a service provider located in another municipality.