Federal Revenue amends understanding on levy of IOF on export revenue exchange operations

Federal Revenue amends understanding on levy of IOF on foreign exchange operations of export revenues that were in deposit abroad

Through COSIT Consultation Solution no. 246/2018, the Federal Revenue of Brazil had expressed understanding of the levy of IOF on exchange operations of values that were in deposit abroad, even if such values represent export revenues.

As it disagreed with the understanding, Centrorochas had filed a writ of mandamus on the grounds that, despite the amounts being deposited abroad after receipt, this fact does not remove their nature as export revenue, and, as such, is immune to taxation.

After the filing of the Writ of Mandamus, the Federal Revenue recognized the mistake and edited a new Consultation Solution with a change of understanding (COSIT Consultation Solution No. 231 of July 15, 2019). Thus, the process brought by Centrorochas questioning the previous understanding lost its object and was extinguished.

Author: Claudio Ferreira Ferraz (Lawyer and legal advisor at Centrorochas)

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