Tax intelligence aims to safely reduce the tax burden of imports by using tools provided by governments.

Import duty calculations are based on many specific numbers, like product price, international freight (including fees at the origin), handling charges, and international cargo insurance, among others. This demonstrates that, in addition to paying taxes on the product, importers also pay taxes on services. By taking advantage of tax experience and intelligence, it’s possible to reduce costs and the tax burden for importers.

Any importer should know the final cost of an imported product. However, when it comes to importing to Brazil, this is never a simple calculation. How much is the international freight? What are the rates for II, PIS, COFINS, ICMS, single-phase taxes, antidumping duty? What are the tax rates for different trade modes? Among many other numbers, this information is essential to plan and design a seamless process, which can give your company a competitive edge over your competition.

Importers of all sizes use legal tools to import goods. Before starting an import operation, these companies hire the service of firms like WeTrade to design the best logistics, financial, and tax strategy.

Reducing your import costs, by taking advantage of incentives granted by the government, will minimize the tax burden of the process, which will have an impact on your company’s cash flow and result in a competitive edge.

Examples of how it is possible to design an import operation using variables that can reduce costs and the tax burden of the process.

• Operation through a commercial importer in Brazil under the mode “Import under Order”: Reduction in the ICMS rate and also the rate for PIS/COFINS in some cases;
• Operation through a commercial importer in Brazil under the mode “Import by Proxy”: Reduction in the ICMS rate, improved cash flow, reduction in import costs;
• Reduction of the impact of ICMS-ST rates on product final cost;
• Cost proposals presented on spreadsheets for a thorough analysis of the operation;
• Study to apply for tax incentives granted by different states;
• Goods from the Mercosur are exempt from import duty. However, if the import documents are incorrect, clients won’t be able to take advantage of this benefit.

There are many variables that can influence the calculations of an import process. Upon understanding our clients’ businesses, their target markets, and their products, we set up the best import strategy. A process designed for a company in the state of São Paulo, which opted for Simples Nacional and will sell a product that’s exempt from direct ICMS-ST to end consumers, will be completely different from a process for a company in the state of Bahia, which opted for Lucro Real and will be a distributor of a product that’s exempt from ICMS-ST and taxable for single-phase PIS/COFINS.

Our job is to make sure our clients have the best import option, by using all the tools provided by different Brazilian states and taking advantage of our tax experience and intelligence.