Mining
On December 19, law No. 13,540/2017 was enacted. It was
originated from executive order No. 789/2017 and its subsequent
bill of law No. 38/2017. The new law changes several rules
regarding the collection of the Financial Compensation for Mineral
Exploitation (Compensação Financeira pela
Exploração de Recursos Minerais – CFEM),
known as the Brazilian mining royalty.
After the discussion in Congress, the final report modified some
aspects of the executive order sponsored by the Federal Government,
essentially regarding CFEM tax basis and rates.
Tax basis
Before the issuance of the mentioned executive order, the CFEM
tax basis was the mineral products net sales, excluding taxes over
the selling as well as transportation and insurance costs. Now, the
tax basis will consider the gross revenue, excluding only taxes
over the selling. If the mineral product is consumed by the
company, from 2018 on, the CFEM may levy on the calculated gross
revenue considering
