- Thirteen Brazilian states hold R$58.8 billion in unpaid ICMS (VAT-like) tax credits owed to companies, a 70% increase from five years ago.
- Companies are pushing to recover these credits before the ICMS tax is abolished in 2032, after which outstanding balances will be paid in installments over 20 years.
- Repayment is delayed due to state budget constraints, cash flow management, and stricter fiscal rules during the election year.
- Minas Gerais has the largest stock of credits (R$17 billion), mainly owed to food, metallurgy, mining, and transportation companies.
- Some companies are transferring credits to third parties, as they cannot use the full amount themselves.
Source: valorinternational.globo.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
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