New Repetro brings significant advances to industry

For Karine Fragoso, Repetro is a fundamental agenda for the expansion and development of the oil markets

2/28/18 4:39 PM

Representatives of companies in the oil and gas market defended, in an event held at FIRJAN, the importance of the new Repetro to ensure a more competitive environment for its productive chain. The event discussed the tax changes promoted by the recent edition of Law 13,586 / 17 and Normative Instruction (IN) No. 1,781 / 17, which regulated the Repetro-Sped, as it is now called, as well as the impacts for the industry.

“The new regime equated the conditions for the importation and domestic acquisition of raw materials, intermediate products and packaging materials for the production of oil and gas. Before, only the purchase in the foreign market had the suspension of the payment of federal taxes, “explained Lycia Braz Moreira, member of the Customs Law Commission of the Brazilian Bar Association – Rio de Janeiro Branch (OAB / RJ).

According to Karine Fragoso, Manager of Oil, Gas and Naval of the Federation, better conditions only for imported products discouraged the purchase in the domestic market. “Repetro is a fundamental guideline for the expansion and development of the oil market, and needs to be aligned with other industry incentive tools, focusing on choosing the best production arrangement and maximizing business opportunities locally. Now, our companies have gained an instrument that guarantees more competitiveness, “she said.

Another benefit implemented by the new law is the exemption of presentation of financial guarantee for platforms and vessels, as well as for the assets admitted as a result of contracts for the provision of global works services. The legislation also brings as a novelty the figure of the definitive importation, with suspension of the payment of federal taxes, which may be converted into an exemption and zero rate for federal taxes, after 5 years of stay in the national territory.

Priscila Sakalem, coordinator of the Tax and Fiscal Juridical Division of the Federation, also emphasized the greater legal certainty of the new Repetro, since it was implemented by federal law. “The regime we had before, the” Old Repetro “, was based on infra-legal norms, that is, only in decrees and INs. The changes to the rules, then, came from the Federal Revenue and Presidency of the Republic, with immediate effectiveness, and without going through the legislative process, “she observes.

Operators Overview

Ana Paula Zettel, Petrobras Federal External Relations Manager, detailed how the company evaluates the impacts of the new legislation. As benefits, she highlighted the reduction in the volume of goods subject to the release process for entry into or exit from the country in customs and the simplification of the procedures for qualification and concession of the regime.

Still, Ana Paula affirms that it is necessary to pay attention to some open points. One of them is the joint enforcement of the old Repetro and Repetro-Sped, which will happen until December 31, 2020: “There are still no clear transition rules. We do not know, for example, how the procedures of migration of the goods covered by the old regime to the present will be given. ” These conditions must be regulated by the General Co-ordination of Customs Administration (Coana).

The elimination of doubts about the extension of Repetro and the unpredictability regarding the tax burden for long-term investments were the main gains with the regulation of the new regime, according to Giselle Brito, coordinator of Exports and Imports at Modec, a Japanese company that provides services to the oil and natural gas industry. “Now with the deadline extension for December 31, 2040, the business environment is more predictable, which allows for more planning for the companies in the market,” she noted.

The seminar, which took place on February 27, was a partnership between the FIRJAN System and the Tax Affairs Commission of OAB / RJ.