Espírito Santo: Transfer of ICMS Accumulated Credits – Deadline to File an Investment Project Postponed | Insights

On April 14, 2020, State Decree No. 4.628-R was published, extending to July 30, 2020, the deadline to file an investment project in the state of Espírito Santo.

The filling of the investment project is a mandatory requirement for the transfer of ICMS accumulated credits in the state of Espírito Santo, pursuant to State Law No. 11.001/2019.

Note that the ICMS accumulated credits related to export transactions can be used or transferred to third parties, provided that:

(i) They will be used to develop a productive investment project, of relevant social and economic interest, by the taxpayer owner of the credits; and

(ii) The accumulated ICMS credit balance is used by the exporting establishment or transferred to third parties for any of the following purposes:

Offsetting ICMS debts related to tax, fine, and monetary restatement
Offsetting debts enrolled as overdue liabilities and its taxable event that occurred until 12.31.2018
Acquiring machinery or equipment used in a manufacturing process when the holder or the recipient is about to settle in the state of Espírito Santo or expand its productive capacity in this state by investing in fixed assets
Acquiring new trucks or chassis with engines, by an establishment providing a service of transport of goods or value, for use in its activities, provided that the vehicles are registered in the state of Espírito Santo.

For more information about the topics raised in this Legal Update, please contact our Tax team.