The entry of components and parts for manufacturing locomotives in the State of Minas Gerais is exempt from the Tax on Circulation of Goods and Services (ICMS). The extension of the benefit – before only provided for the locomotives – was established by the Decree No. 45980, published this Friday on the Official Gazette of the State.
The government of Minas Gerais has also released the taxpayers from paying the ICMS rate differential on transactions between States. Usually, companies are required to pay the difference between internal and interstate rates when they buy goods for use. “But in this case the import is exempt. Therefore, the rate that applies is that one applied internally,” said the lawyer Graça Lage, from Lex Legis Consultoria Tributária.
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