Not all 27 Brazilian states share the same rate for ICMS tax. Learn in this article what Rio de Janeiro's tax rates are and some exemptions of it.
One of the Brazilian taxes is called Imposto sobre Circulação de Mercadorias e Serviços, or simply ICMS. It is not a federal tax, which means that it may have different rates according to each state.
It's necessary, thus, to learn the state law and its application when there is movement of goods and services, in order to pay exactly the amount requested.
Exceptions from the Base Rate in Rio de Janeiro State
Rio de Janeiro fixed rate is of 19% and it applies to the movement of most products and services in the state. However, there may be higher or lower rates for certain goods. In the following table you will have an overview of these exceptions. It's important to keep in mind that they can change from time to time, making it always necessary to consult the latest table available.
| Tax Rate |
| Goods |
| 37% |
- guns and ammunition
- perfume and cosmetics
- alcoholic beverages, except beers, draft beers and sugarcane or molasses spirits
- fur and fake fur
- sports and recreational vessels
| 35% |
- cigarettes, cigarillos and cigars
| 30% |
- alcohol for fuel purposes
- aviation kerosene
| 25% |
| 20% |
- beer, draft beer and soda
| 18% |
- electric energy up to the monthly consumption of 300 kwh
| 12% |
- basic products such as rice, beans, salt, bread
- operations with cattle, poultry and rabbit, and the eatable products resulting from their killing
- food provision, including the services provided by restaurants, snack bars, bars, cafés and similar food and beverage operations
- electric energy supply for rural electric cooperatives, and its distribution to the rural producer with agricultural and pasture cultivation and registered with the Rio de Janeiro Contributor's Register, CADERJ
- machines, equipment and vehicles destined for the implantation, enlargement, modernization or relocation of industrial or agro-industrial units, which seek the incorporation of the technologies, industrial decentralization, environmental protection, the safety and health of the workers and the reduction of the regional disparities
| 7% |
- specialized material or equipment for disabled people and medication for chronic or transplant renal patients
| 6% |
- operations with electric energy when it is used in the electrified public transport of passengers
- operations with diesel when it is used in the transport of passengers via urban buses or in the transport of passengers of the waterway system, legally allowed by the state or municipal power that has an agreement with the Secretaria de Estado de Fazenda do Rio de Janeiro – the Rio de Janeiro State Treasurer's Office - and with Detro, the Departamento de Trânsito Rodoviário – road transport department - or to any other representation institution of the municipality.
This table is only a guide for ICMS rates. For more information, please consult a tax adviser.