Tax free: foreign tourists may receive tax exemption in Rio de Janeiro
Tax free: foreign tourists may receive tax exemption in Rio de Janeiro .      The project was approved by State Assembly. The tax waiver amounts to R$ 85 million over three years Foreign tourists could soon benefit from a tax exemption on purchases made in stores across Rio de Janeiro. The "Tax Free" initiative allows for the refund of the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) on goods bought by non-resident individuals in Brazil.
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Aimed at attracting visitors and boosting consumption in Rio's commercial establishments, the bill was proposed by the state government and approved on Tuesday
Jornal O Globo
Foreign tourists could soon benefit from a tax exemption on purchases made in stores across Rio de Janeiro. The "Tax Free" initiative allows for the refund of the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) on goods bought by non-resident individuals in Brazil.

Aimed at attracting visitors and boosting consumption in Rio's commercial establishments, the bill was proposed by the state government and approved on Tuesday by the Legislative Assembly of Rio (Alerj).

However, this tax benefit will not apply to all purchases made by international visitors. Refunds will only be available for goods purchased and taken back upon departure, such as gifts, souvenirs, and memorabilia from the city.

Excluded from the Tax Free scheme are goods subject to tax substitution systems, which include purchases at supermarkets, pharmacies, and similar outlets, as well as services and related goods, like meals and beverages sold in bars, restaurants, and hotels.

In english: Read more stories on O GLOBO's website

Once signed by the governor, the plan requires regulation within 15 days, with the State Finance Department specifying details such as minimum transaction values. Additionally, the government must establish accreditation conditions for commercial establishments. Businesses under the Simples Nacional regime and individual micro-entrepreneurs (MEI) will not be eligible for accreditation.

Another aspect to be determined by the Guanabara Palace is the opening of a bidding process to hire a company to manage the refunds.

'International competitiveness'

State government estimates suggest a fiscal impact of R$85 million in tax exemptions over the next three years, with a reduction of R$11.5 million in Rio's treasury next year, R$24 million in 2026, and R$49.7 million in 2027.

"The goal is to align with successful international practices already implemented in countries like Uruguay, Argentina, and Chile, to stimulate consumption by foreign tourists, strengthen local tourism, and make Rio a renowned shopping destination, in addition to its cultural and leisure activities," said Governor Cláudio Castro (PL) in the proposal's justification.

The approval of the project has excited business sectors. Alfredo Lopes, president of the Rio Hotel Union (HotéisRio), commented that while not a decisive factor, it encourages tourists to spend more in the state.

Meanwhile, Antonio Florencio de Queiroz Junior, president of Fecomércio RJ, emphasized the program's potential to boost spending by foreign tourists. Research by IFec RJ, affiliated with the entity, found that 55% of tourists who shopped in Rio would spend more if the Tax Free option were available.

"The approval of Tax Free in Rio state is a key milestone for strengthening commerce and tourism in the region. The measure places Rio on a new level of international competitiveness," he celebrated.

How will it work?

The tax benefit will apply only to purchases made in person with a credit card issued abroad. The refund of the tax paid will be limited to the ICMS highlighted on the invoice and will be granted to tourists who leave the country within thirty days of the purchase date.

To access the exemption, foreign consumers must indicate their intention to request a refund at the time of purchase. The request will be made in the departure areas of ports and airports in the state, where tourists must present the purchase document and an internationally issued passport (or identity card for residents of Mercosur countries).
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2024-12-04
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     The project was approved by State Assembly. The tax waiver amounts to R$ 85 million over three years Foreign tourists could soon benefit from a tax exemption on purchases made in stores across Rio de Janeiro. The "Tax Free" initiative allows for the refund of the Imposto sobre Circulação de Mercadorias e Serviços (ICMS) on goods bought by non-resident individuals in Brazil.
2031 Pan American Games: Rio and Niterói officialize joint bid to host
2025 school ranking: Check out the most exclusive and expensive schools in Brazil, according to Forbes
Aimed at attracting visitors and boosting consumption in Rio's commercial establishments, the bill was proposed by the state government and approved on Tuesday by the Legislative Assembly of Rio (Alerj).
However, this tax benefit will not apply to all purchases made by international visitors. Refunds will only be available for goods purchased and taken back upon departure, such as gifts, souvenirs, and memorabilia from the city.
Excluded from the Tax Free scheme are goods subject to tax substitution systems, which include purchases at supermarkets, pharmacies, and similar outlets, as well as services and related goods, like meals and beverages sold in bars, restaurants, and hotels.
In english: Read more stories on O GLOBO's website
Once signed by the governor, the plan requires regulation within 15 days, with the State Finance Department specifying details such as minimum transaction values. Additionally, the government must establish accreditation conditions for commercial establishments. Businesses under the Simples Nacional regime and individual micro-entrepreneurs (MEI) will not be eligible for accreditation.
Another aspect to be determined by the Guanabara Palace is the opening of a bidding process to hire a company to manage the refunds.
'International competitiveness'
State government estimates suggest a fiscal impact of R$85 million in tax exemptions over the next three years, with a reduction of R$11.5 million in Rio's treasury next year, R$24 million in 2026, and R$49.7 million in 2027.
"The goal is to align with successful international practices already implemented in countries like Uruguay, Argentina, and Chile, to stimulate consumption by foreign tourists, strengthen local tourism, and make Rio a renowned shopping destination, in addition to its cultural and leisure activities," said Governor Cláudio Castro (PL) in the proposal's justification.
The approval of the project has excited business sectors. Alfredo Lopes, president of the Rio Hotel Union (HotéisRio), commented that while not a decisive factor, it encourages tourists to spend more in the state.
Meanwhile, Antonio Florencio de Queiroz Junior, president of Fecomércio RJ, emphasized the program's potential to boost spending by foreign tourists. Research by IFec RJ, affiliated with the entity, found that 55% of tourists who shopped in Rio would spend more if the Tax Free option were available.
"The approval of Tax Free in Rio state is a key milestone for strengthening commerce and tourism in the region. The measure places Rio on a new level of international competitiveness," he celebrated.
How will it work?
The tax benefit will apply only to purchases made in person with a credit card issued abroad. The refund of the tax paid will be limited to the ICMS highlighted on the invoice and will be granted to tourists who leave the country within thirty days of the purchase date.
To access the exemption, foreign consumers must indicate their intention to request a refund at the time of purchase. The request will be made in the departure areas of ports and airports in the state, where tourists must present the purchase document and an internationally issued passport (or identity card for residents of Mercosur countries).
The translation of this text into english was carried out by Project Irineu, O GLOBO's initiative to develop artificial intelligence tools. Here is the link to the original report.
Tax free: foreign tourists may receive tax exemption in Rio de Janeiro