The Brazilian Federal Revenue Service has revised its understanding regarding the taxation of sales made to companies in the Manaus Free Trade Zone (ZFM). Now, the General Coordination of Taxation (Cosit) has decided that the zero rate of PIS and Cofins, provided for in Law No. 10,996 of 2004, is not affected by the 10% cut imposed on tax benefits by Complementary Law (LC) No. 224 of 2025.
This reversal is formalized through Cosit/Sutri/RFB Note No. 207, of 2026. The issue came to light because the National Confederation of Industry (CNI) requested a technical opinion on the matter through Receita Soluciona, aimed at facilitating dialogue between the agency and national confederations, trade union centers, and national-level class entities.
Brazilian Law 224/2025 mandates the application of 10% of the standard tax system rate for companies with tax benefits. Therefore, regarding PIS/Cofins, this percentage should be applied to the rate of 3.65% (cumulative calculation) or 9.25% (non-cumulative calculation) of revenue.
First, through Cosit/Sutri/RFB Note No. 141 of 2026, the Federal Revenue Service had stated that the 10% cut would cover sales to the Manaus Free Trade Zone, for consumption or industrialization. In practice, according to experts, this would mean an increase in the tax burden for those established in the region, with an indirect impact on companies that trade with them.
The Federation of Industries of the State of Amazonas (Fieam) even obtained a court ruling to overturn tax assessments against its members in cases of non-compliance regarding the 10% cut-off. According to tax experts, other companies have begun considering going to court to try to obtain the same right.
Issued by Judge Ricardo A. Campolina De Sales, of the 3rd Federal Civil Court of the Amazonas State Court, the decision establishes that the Revenue Service is "prevented from using said guidance as a basis to demand, establish, assess, levy, collect, register as overdue debt, deny tax clearance certificates, apply penalties or impose any tax restriction on the category" (case no. 1035306-40.2026.4.01.3200).
The review of the tax authority's position was seen by experts as a correct decision. “There is binding case law that recognizes differentiated treatment for sales to the Manaus Free Trade Zone, equating them to exports. This prevents the application of 10%,” states Fabio Calcini, partner at the law firm Brasil Salomão. “Complementary Law 224 itself is clear in stating that it does not apply to tax exemptions,” he adds.
According to the tax expert, this is the path that society wants to see: collaboration and good faith in the relationship between taxpayers and the tax authorities, "and that they have the intellectual humility to revisit an issue and change their position.".
In the new statement, says Douglas Campanini, managing partner of Athros Auditoria e Consultoria, the agency itself mentions the position of the Supreme Federal Court (STF) and the Administrative Council of Tax Appeals (Carf) regarding the tax immunity of this type of operation.
The tax authority states that "the Supreme Court, in the aforementioned ruling [ADI nº 310/AM], established that the pre-constitutional legislation incentivizing the Manaus Free Trade Zone was received by article 40 of the ADCT [Act of Transitory Constitutional Provisions] and, consequently, such rules have the nature of tax immunity.".
In another excerpt from the note, the agency points out that CARF issued Ruling No. 153, approved by the 3rd Panel of the Superior Council in 2019, with the following content: “Revenues from sales of products made to establishments located in the Manaus Free Trade Zone are equivalent to export revenues and are therefore not subject to PIS and COFINS contributions.”.
According to the president of Fieam, Antonio Silva, the correction made by the Revenue Service resolves an interpretative error. “This technical review ensures the correct application of the exception provided for in Complementary Law No. 224 of 2025, respecting and preserving the legal framework of our region,” he says. The regulation lists some tax benefits that are not subject to the 10% cut.
Regarding the main impact on industries, Silva states that "by institutionally consolidating the fact that revenues from sales to the Manaus Free Trade Zone are not subject to these contributions, due to their constitutionally protected nature, the tax authorities restore the predictability essential for the safe continuity of manufacturing operations.".
Previously, the tax authorities had only considered the literal interpretation of the supplementary law that cuts tax benefits, according to lawyer Ana Flora Diaz, partner at HRSA Sociedade de Advogados. “Even companies that are part of Fieam only had provisional protection, which could be overturned at any moment. Now, with the new understanding from the tax authorities, there is indeed legal certainty for everyone who conducts operations with the Manaus Free Trade Zone.”
Ana also pointed out that the PIS and Cofins contributions will cease to exist in December of this year, due to the tax reform, which will replace them with the Contribution on Goods and Services (CBS). "But the old statement from the Revenue Service would create a dangerous precedent, which could be used as ammunition for other attacks on the Manaus Free Trade Zone, in the context of the reform," she says.
If transactions subject to the 10% toll were carried out between the publication of the first and second notices from the Federal Revenue Service, according to lawyer Gustavo Faviero of AMFF Almeida Prado, Marx, Faviero e Flôr Advogados, companies can claim a refund of the amounts paid or, through legal means, request the right to the corresponding credit. “Companies that sold at a higher price to the Manaus Free Trade Zone (ZFM) because of the 10% toll can also take legal action,” he states. “Fortunately, the Revenue Service acknowledged the error, but this clearly illustrates the legal uncertainty that exists in Brazil.”
In a statement, the Brazilian Federal Revenue Service explained that “the initial analysis contained in Cosit Note No. 141/2026 was limited to examining the hypothesis foreseen in item II of § 8 of article 4 of Complementary Law No. 224/2025, which deals with the constitutional safeguard of the Manaus Free Trade Zone. However, after a reassessment resulting from a request for review, the Revenue Service found that the exclusion of the linear reduction of the benefit of Law No. 10,996/2004 is precisely based on item I of § 8 of article 4 of Complementary Law 224”. Contacted by Valor, the National Confederation of Industry (CNI) declined to comment.
Source: Economic ValueThe Brazilian Federal Revenue Service has revised its understanding regarding the taxation of sales made to companies in the Manaus Free Trade Zone (ZFM). Now, the General Coordination of Taxation (Cosit) has decided that the zero rate of PIS and Cofins, provided for in Law No. 10,996 of 2004, is not affected by the 10% cut imposed on tax benefits by Complementary Law (LC) No. 224 of 2025.
This reversal is formalized through Cosit/Sutri/RFB Note No. 207, of 2026. The issue came to light because the National Confederation of Industry (CNI) requested a technical opinion on the matter through Receita Soluciona, aimed at facilitating dialogue between the agency and national confederations, trade union centers, and national-level class entities.
Brazilian Law 224/2025 mandates the application of 10% of the standard tax system rate for companies with tax benefits. Therefore, regarding PIS/Cofins, this percentage should be applied to the rate of 3.65% (cumulative calculation) or 9.25% (non-cumulative calculation) of revenue.
First, through Cosit/Sutri/RFB Note No. 141 of 2026, the Federal Revenue Service had stated that the 10% cut would cover sales to the Manaus Free Trade Zone, for consumption or industrialization. In practice, according to experts, this would mean an increase in the tax burden for those established in the region, with an indirect impact on companies that trade with them.
The Federation of Industries of the State of Amazonas (Fieam) even obtained a court ruling to overturn tax assessments against its members in cases of non-compliance regarding the 10% cut-off. According to tax experts, other companies have begun considering going to court to try to obtain the same right.
Issued by Judge Ricardo A. Campolina De Sales, of the 3rd Federal Civil Court of the Amazonas State Court, the decision establishes that the Revenue Service is "prevented from using said guidance as a basis to demand, establish, assess, levy, collect, register as overdue debt, deny tax clearance certificates, apply penalties or impose any tax restriction on the category" (case no. 1035306-40.2026.4.01.3200).
The review of the tax authority's position was seen by experts as a correct decision. “There is binding case law that recognizes differentiated treatment for sales to the Manaus Free Trade Zone, equating them to exports. This prevents the application of 10%,” states Fabio Calcini, partner at the law firm Brasil Salomão. “Complementary Law 224 itself is clear in stating that it does not apply to tax exemptions,” he adds.
According to the tax expert, this is the path that society wants to see: collaboration and good faith in the relationship between taxpayers and the tax authorities, "and that they have the intellectual humility to revisit an issue and change their position.".
In the new statement, says Douglas Campanini, managing partner of Athros Auditoria e Consultoria, the agency itself mentions the position of the Supreme Federal Court (STF) and the Administrative Council of Tax Appeals (Carf) regarding the tax immunity of this type of operation.
The tax authority states that "the Supreme Court, in the aforementioned ruling [ADI nº 310/AM], established that the pre-constitutional legislation incentivizing the Manaus Free Trade Zone was received by article 40 of the ADCT [Act of Transitory Constitutional Provisions] and, consequently, such rules have the nature of tax immunity.".
In another excerpt from the note, the agency points out that CARF issued Ruling No. 153, approved by the 3rd Panel of the Superior Council in 2019, with the following content: “Revenues from sales of products made to establishments located in the Manaus Free Trade Zone are equivalent to export revenues and are therefore not subject to PIS and COFINS contributions.”.
According to the president of Fieam, Antonio Silva, the correction made by the Revenue Service resolves an interpretative error. “This technical review ensures the correct application of the exception provided for in Complementary Law No. 224 of 2025, respecting and preserving the legal framework of our region,” he says. The regulation lists some tax benefits that are not subject to the 10% cut.
Regarding the main impact on industries, Silva states that "by institutionally consolidating the fact that revenues from sales to the Manaus Free Trade Zone are not subject to these contributions, due to their constitutionally protected nature, the tax authorities restore the predictability essential for the safe continuity of manufacturing operations.".
Previously, the tax authorities had only considered the literal interpretation of the supplementary law that cuts tax benefits, according to lawyer Ana Flora Diaz, partner at HRSA Sociedade de Advogados. “Even companies that are part of Fieam only had provisional protection, which could be overturned at any moment. Now, with the new understanding from the tax authorities, there is indeed legal certainty for everyone who conducts operations with the Manaus Free Trade Zone.”
Ana also pointed out that the PIS and Cofins contributions will cease to exist in December of this year, due to the tax reform, which will replace them with the Contribution on Goods and Services (CBS). "But the old statement from the Revenue Service would create a dangerous precedent, which could be used as ammunition for other attacks on the Manaus Free Trade Zone, in the context of the reform," she says.
If transactions subject to the 10% toll were carried out between the publication of the first and second notices from the Federal Revenue Service, according to lawyer Gustavo Faviero of AMFF Almeida Prado, Marx, Faviero e Flôr Advogados, companies can claim a refund of the amounts paid or, through legal means, request the right to the corresponding credit. “Companies that sold at a higher price to the Manaus Free Trade Zone (ZFM) because of the 10% toll can also take legal action,” he states. “Fortunately, the Revenue Service acknowledged the error, but this clearly illustrates the legal uncertainty that exists in Brazil.”
In a statement, the Brazilian Federal Revenue Service explained that “the initial analysis contained in Cosit Note No. 141/2026 was limited to examining the hypothesis foreseen in item II of § 8 of article 4 of Complementary Law No. 224/2025, which deals with the constitutional safeguard of the Manaus Free Trade Zone. However, after a reassessment resulting from a request for review, the Revenue Service found that the exclusion of the linear reduction of the benefit of Law No. 10,996/2004 is precisely based on item I of § 8 of article 4 of Complementary Law 224”. Contacted by Valor, the National Confederation of Industry (CNI) declined to comment.
Source: Economic Value