What is the FUNDAP BENEFIT?
The FUNDAP BENEFIT is a tax strategy of the state of Espírito Santo that aims to stimulate regional economic development by providing a reduction in the ICMS tax burden for companies that meet certain criteria. With FUNDAP, companies can pay a reduced ICMS on their operations, which can represent significant savings and increase competitiveness.
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ICMS rates in the state of Espírito Santo
ICMS (Tax on Circulation of Goods and Services) in Espírito Santo can vary depending on the nature of the operation and the product involved. Here are the main rates that apply:
- 4%: General products, applied to outputs destined for wholesale CNAE.
- 12%: Products with no national similar (according to the Camex List) destined for the wholesale CNAE.
- 8.8%: Products listed in the annexes to Confaz Solution 52/91 – generally industrial and agricultural machinery.
- 17% with a reduction in the calculation base of up to 7%: Applied to outputs destined for other activities (industry, retail).
- 17%: Products intended for fixed assets.
FUNDAP BENEFIT Prohibitions and Restrictions
It is essential to be aware of the prohibitions specified by Decree No. 4.357-N of November 10, 1998. Some restrictions include:
- Compulsory clearance: The clearance of goods must take place in ports or enclosures in the state of Espírito Santo.
- Restrictions on types of operations: The FUNDAP benefit does not apply to all operations and types of products. Be sure to check the specific provisions to avoid any problems with the application of the benefit.
FUNDAP Import Modalities: Account and Order and Parcel
The FUNDAP benefit can be used both for Account and Order transactions, provided the client has a company incorporated in Espírito Santo, and for Orders.
- Compliance with requirements: To obtain the benefit, it is essential that all requirements are strictly met, including correct documentation and compliance with clearance requirements.
How to benefit from FUNDAP
To make the most of the benefits offered by FUNDAP, follow these steps:
- Specialist consultancy: Consider Superia Trading, a specialist in ICMS to ensure that you are applying the benefit correctly and taking advantage of all the savings opportunities.
- Check your eligibility: Confirm that your company and its operations meet the criteria established by FUNDAP.
- Correct documentation: Make sure that all the necessary documentation is in order and that the clearance of the goods takes place as required.
The FUNDAP BENEFIT can be a powerful tool for companies in Espírito Santo wishing to reduce their ICMS expenses. With proper knowledge of the rates, prohibitions and observations, you can maximize your savings and improve your company’s tax efficiency. If you need help to better understand the FUNDAP BENEFIT and how it applies to your business, please contact Superia.
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