Brazilian IRS issues rules for foreign companies in Olympics

The Brazilian Internal Revenue Service (IRS) issued this Tuesday (Apr. 26) the special rules concerning tax obligations for companies that enjoy tax benefits relating to the execution of works to the Olympic and Paralympic Games in 2016 in Brazil. The list of individuals and companies licensed to enjoy these legal tax benefits was published last March.

According to the law, some companies were qualified for federal taxes exemption, for example, in imports of goods, commodities, or services for exclusive use or consumption "related to their own activities and directly linked to the organization or execution of these events", the Olympic Games, in the case.

Under a general rule, companies based in Brazil abide by the rules followed by the Brazilian companies and taxes must be collected. According to the IRS, this rule stipulates that only certain entities based abroad will be exempted from some tax obligations, like the International Olympic Committee (IOC) and sports federations.

Translated by Amarílis Anchieta