Materials, Goods and Services for Brazilian World-Cup Venue Construction to Enjoy Import Tariff Exemption

On July 28, 2010, the Brazilian Government promulgated a provisional measure in its official journal, stipulating that the transformation and renovation, extension, and new construction of the 2014 World Cup venues may all enjoy special taxation preferences.

According to the stipulations, engineering construction enterprises registered at the Ministry of Sports of Brazil may be exempt from the following taxes: program of social integration/financing of social security (PIS-Programa do Integração Social/CONFINS-Financiamento da Seguridade Social), tax on industrialized products (IPI-Imposto de Produtos Industrializados), and the import tariff of materials, goods and services needed in the venue construction.

The provisional measure shall take effect as of August 28, 2010, keeping valid till June 30, 2014.