Decree No. 8,463/2015 regulated the tax measures relating to the Olympic and Paralympic Games to be held in Brazil in 2016. Among them, the decree introduced various tax exemptions applicable to the committees and entities involved in the organization and holding of the event, in addition to the applicable ancillary obligations. For imports, exemptions have been granted for goods, merchandise and services for use and consumption in own activities and linked to the event, as well as suspension of taxes for goods under temporary admission regime, to be used in the event.

With regard to federal taxes, tax exemptions have also been granted for committees and companies linked to them, both for those residing abroad and those domiciled in Brazil. It is worth mentioning that some earnings have been excluded from the benefit, such as income and capital gains earned from financial transactions or sale of assets and rights.

Finally, with regard to indirect taxes, an exemption of IPI (tax on manufactured products) was determined for domestic products purchased directly from the manufacturer?s industrial plant, for use and consumption in the organization or holding of the event. In addition, there is also an exemption of PIS and COFINS for the sale of goods and services occurring in the domestic market, when intended for committees and companies related to them.