On February 18, 2019, Legislative Decree No. 02/2016 was declared unconstitutional.

Decree No. 02/2016, which the Rio de Janeiro Assembly published on December, 15, 2016, had immediately suspended Decree No. 41.142/2018. The latter decree had instituted in Rio de Janeiro State the rules approved by Convention no. 130/07 related to the tax treatment for REPETRO (at the state level).

Oil and gas industry participants filed several lawsuits contesting the constitutionality of Decree No. 02/2016. One of those lawsuits generated the incidental motion for unconstitutionality No. 0000321-40.2017.8.19.0000.

On February 18, 2019, the special panel of Rio de Janeiro State Court accepted, unanimously, the incidental motion.

For more information on the impact of this decision, please contact our tax team.