Brazil: Overview of indirect tax changes effective in 2022

Changes include measures concerning the ICMS, PIS, and COFINS.

Effective in 2022

Changes relating to indirect taxes effective in 2022 include measures concerning the ICMS, PIS, and COFINS.

  • ICMS—Imposto sobre Circulação de Mercadorias e Serviços—is a state-level sales tax imposed on the physical movement of merchandise.
  • PIS (programa de integração social) refers to an employees’ profit participation program, and COFINS (contribuição para o financiamento da seguridade social) refers to a social contribution program for social security financing.


  • Law No. 190/2022 (Lei Complementar nº 190/2022) concerns the collection of the ICMS tax differential related to interstate transactions and services intended for the final consumer.
  • Provisional Measure No. 1095/2021 revoked the reduction of the PIS / COFINS tax burden on imports and on revenue from the sale of various inputs used by petrochemical and chemical sector industries. A special regime for the chemical industry (Regime Especial das Industrias Químicas—REIQ) was expected to be phased out gradually, and end completely in 2025. The provisional measure must be converted into law, and Congress has until the beginning of June 2022 to act.

KPMG observation

In Brazil, a provisional measure (Medida Provisória) is an “act” issued by the president, with the authority of law until it is later approved by the national legislature. Until it is transposed into law, a provisional measure generally is effective from its date of publication for a 60-day period (subject to an extension for an additional 60-day period (for a total of 120 days)).

  • With Decree No. 10,923/2021, a new version of IPI (an excise tax) was approved, and certain prior guidance items were revoked.
  • The state government of São Paulo introduced changes to its ICMS rules.

Read a January 2022 report (Portuguese) prepared by the KPMG member firm in Brazil


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