One of the barriers to internationalization has just fallen: the Ministry of Economy announced, on Monday (17), the definitive shutdown of the Integrated System of Foreign Trade in Services, Intangibles and Other Operations that Produce Variations in Patrimony – Siscoserv.
The decision to deactivate the system came after the evaluation of the Brazilian model of data collection related to foreign trade in services carried out by the Special Secretariats for Foreign Trade and International Affairs (Secint) and by the Federal Revenue of Brazil.
“This measure is part of the process of reducing bureaucracy in the business environment. Before, all service exports above US $ 30,000 per month had to be registered with Siscoserv,” Adriana Lemos, a tax consultant at Drummond Advisors, explained.
The measure aims to facilitate import and export processes and improve the business environment. Since last year the Federal Government had been studying possible changes related to data collection of foreign trade related to services.
The deadlines for delivering Siscoserv information were already suspended until December 31, 2020. On July 11, the Siscoserv system was deactivated by determination of the Ministry of Economy. The Department of Foreign Trade Operations (DECEX) clarified that the system shutdown would be temporary due to the pandemic scenario in Brazil. In view of the definitive shutdown, Brazilian exporters and importers of services will no longer need to report information in the system.
What is Siscoserv
Siscoserv is a foreign trade obligation instituted in 2012 with the purpose of collecting data on imports and exports of services, intangibles and other operations that produce variations in equity between Brazilians and foreigners.
“In the case of internationalized companies, which in general have a large percentage of their revenues associated with exports, we suggest carrying out careful tax planning to correctly allocate transactions and stay away from trouble,” said Adriana Lemos. The change was announced on the Federal Government’s official website. Regulatory changes are expected to be edited in the coming weeks.