The federal government published Provisional Measure (MP) nº 795/2017, which complements the Special Customs Regime for the Export and Import of Assets Destined for Research and Development Activities of Oil and Natural Gas (Repetro). Currently, this regime suspends the federal taxation on assets destined to the exploration and production, in order to bring competitiveness to the investments in this segment.

Repetro also had its term of validity extended until December 31, 2040, by the forecast of Decree No. 9,128, published on the same day, which was scheduled until the end of 2019. The MP provides for the suspension of federal taxes for all The other links in the supply chain, including, for example, intermediate and raw material producers.

According to the MP, in addition to affecting the acquisition of temporary residence goods in the country, Repetro will also be valid for those permanently needed, mainly for pre-salt exploration and production activities.

"These changes are very significant and happen as a result of the FIRJAN System acting together with important institutions in this market," said Priscila Sakalem, Tax and Tax Law Coordinator of the Federation.

Another positive change is the one that extends the regime that will contemplate the acquisition of tools destined to the maintenance of the goods, and not only the investments, which must appear in a list to be elaborated by the Federal Revenue of Brazil (RFB). According to Priscila, this is a point of attention for the market.

"We have to wait for the publication of the list and the regulation by the IRS to analyze the real impacts of this legislative change to the market," he said. She points out that FIRJAN is considering submitting amendments to the proposal by August 24, the deadline for receiving suggestions.

The MP is to be analyzed by the Chamber until September 14, moving to the Senate until the 28th of the same month. If it is not approved by December 16, the measure loses its validity. According to the text, its validity begins on January 1, 2018.

MP no. 795/2017 and Decree No. 9,128 / 2017 were published in the Official Gazette on August 18, 2017.