The 1st Panel of the Superior Chamber of Tax Appeals of CARF issued a decision in which the taxation of ICMS incentives, in this case granted by the State of Goiás, was ruled out.
Such ICMS incentives were considered as a subsidy for investments, which are used to stimulate the implementation or expansion of economic enterprises and for this reason the CARF judges understood that they are not subject to taxation.
Unlike the investment subsidy, there is the cost subsidy, the amount of which is included in the company’s gross revenue and, therefore, is taxed by IRPJ, CSLL, PIS and COFINS, a situation that was ruled out in the case analyzed by CARF.
