The Legislative Assembly of Rio de Janeiro approved last Tuesday (31) the Bill 2023/2020 that directs the e-commerce companies the payment of ICMS in the services of online purchase and creation of websites. Even the text not sanctioned by the current governor of the state, this decision can increase by up to 18% in the final price of information technology products and services and contribute to the weakening of the digital economy.
According to Rodolfo Fücher, president of the Brazilian Association of Software Companies (ABES), companies already collect ISS - municipal tax, on this activity, as required by the Brazilian Constitution. “If the state of Rio de Janeiro insists on the creation of the ICMS, the measure will be considered double taxation and will end in a fiscal war between the state and the municipalities, as happened in the State of São Paulo until the Court of Justice 'recognized the illegality of Decree No. 63.099 / 17 ”, he explains. For him, the result of this decision, in addition to increasing prices for the citizen who uses these services, will be yet another legal battle and will further discourage Brazilian entrepreneurship.
The e-commerce service, such as the use of digital solutions (Information Technology), had been growing dramatically and, with the arrival of COVID-19 in Brazil and the recommendation of social isolation, many entrepreneurs directed the physical doors of the establishments to the web, driving delivery activities. In this pandemic, the use of digital platforms has been fundamental, allowing remote work (home office), audio and video conferences to be carried out, making it possible to operate and vote by city councils, legislative assemblies, deputies' chamber and senate. federal court, allowing online sessions and judgments to be held by the courts (including the Federal Supreme Court). In the health area, this digital technology has provided virtual medical care, the use of applications to help identify contagion and guidance on how to proceed, psychotherapy sessions and even physical activities. However, the addition of yet another tax can make the use of these technologies and electronic commerce in the state of Rio de Janeiro unfeasible, bringing serious consequences for the entrepreneur and making it impossible for citizens to access a multitude of services.
“When this possibility arose in the state of Santa Catarina, the representatives understood that this could harm a promising sector for the economy and, today, the state is considered the Brazilian silicon valley. To maintain legal certainty for companies in the sector, Santa Catarina recently enacted a new law No. 17,736, declaring no ICMS tax on software operations. If Rio de Janeiro bets on this idea, consumers will have to pay more and consequently will lead to the weakening of business in the digital sphere of the state ”, comments Fücher. “The market data shows how Santa Cataria is heading in the right direction, and São Paulo in the opposite direction, IDC research on the software market, point out that Santa Catarina's share in the IT market jumped from 2.4% to 4% between 2017 and 2018 , while São Paulo dropped from 40.4% to 36% in the same period. ”
About ABES
ABES, Brazilian Association of Software Companies, aims to contribute to the construction of a more digital and less unequal Brazil, in which information technology plays a fundamental role in the democratization of knowledge and the creation of new opportunities for all. In this sense, it aims to ensure a business environment conducive to innovation, ethical, dynamic and globally competitive, always aligned with its mission of connecting, guiding, protecting and developing the Brazilian information technology market.
Currently, ABES represents approximately 2 thousand companies, which total about 85% of the revenue of the software and services segment in Brazil, distributed in 23 Brazilian states and in the Federal District, responsible for the generation of more than 205 thousand direct jobs and an annual revenue of the order of R$ 61 billion in 2018.
It is a reference as a source of data for the sector and focuses its actions in the legal, tax, regulatory, compliance and innovation promotion areas, among others. ABES promotes entrepreneurship, aims to improve the business environment and competitiveness and strives for a more digital and less unequal Brazil.
Access the ABES Portal - http://www.abes.org.br or speak to our Relationship Center: +55 (11) 2161-2833.
ABES - Press contacts:
Weber Shandwick Brasil - abes@webershandwick.com
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