The Nucleus for Tax Law of the Professional Master’s of FGV’s Sao Paulo Law School (Direito SP) has launched the digital book ‘Tributação de bens digitais: a disputa tributária entre estados e municípios: Notas sobre o Convênio ICMS 106/2017 e outras normas relevantes’ [Taxation of digital goods: the tax dispute between states and municipalities: Notes on the ICMS 106/2017 Agreement and other relevant standards], published by Editora InHouse, during the event ‘Taxation of digital goods and taxation of games in Brazil’, on April 13, in Sao Paulo. The book breaks down relevant tax developments of the ICMS 106/2017 Agreement through a collection of papers, coordinated by professor Tathiane Piscitelli.  

The dispute between states and municipalities for the taxation of digital goods has intensified since mid-2017. On one side, municipalities consider that any computer program, available via download or cloud access, is subject to the ISS tax. On the other side, states support the application of the ICMS tax if the software is standardized, even if it is digital or cloud-based. The ICMS 106 Agreement was published in September 2017 to regulate the application of ICMS on these operations, theoretically bringing this dispute to an end. However, its text equates websites to physical establishments and, since it addresses matters that should be subject to complementary law, it was eventually questioned in court. Earlier this year, an injunction was granted in a collective writ of mandamus suspending the enforceability of the ICMS 106/2017 Agreement and the state decree that regulated it in Sao Paulo.

The Nucleus for Tax Law of the Professional Master’s of Direito SP has been researching the subject for two years, in order to deepen the debate, generate knowledge on the topic, and contribute to the development of public policies focused on the taxation of technological development, as well as ensuring legal certainty to society as a whole. Since the creation of the New Technologies and Taxation Groups, the Nucleus has brought together professors and researchers from Direito SP and other institutions – including law firms, public authorities, and the financial industry –, hosting regular meetings that have resulted in several papers and in the publication of the first book on the subject.

In addition to the event ‘Taxation of digital goods and taxation of games in Brazil’, four other events are planned for this year, including one that will discuss the recent OECD report on the digital tax package presented in the BEPS (Base Erosion and Profit Shifting) and possible solutions that may be appropriate for Brazil.

Click here to purchase the book.