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Brazil: ICMS withholding guidance (São Paulo)

Brazil: ICMS withholding guidance (São Paulo)

The State of São Paulo published guidance (Portaria CAT Ordinance No. 42 of 2018) concerning the ICMS withholding rules and the system available for certain refunds of ICMS withheld. Under the ordinance (now in effect), information required by the new system will be presented monthly by means of a digital system and will concern all goods subject to the ICMS withholding measures.


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The ICMS—Imposto sobre Circulação de Mercadorias e Serviços—is typically a state-level sales tax imposed on the physical movement of merchandise. The ICMS is also levied on certain inter-state and inter-municipal services.

Taxpayers that are residents of another state but that conduct transactions within the territory of São Paulo are expected to use the new system for determining the ICMS to be withheld and remitted to the state government in São Paulo.


Read a June 2018 report (Portuguese) prepared by the KPMG member firm in Brazil

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