The municipality of Rio de Janeiro published Law No. 7.907 of 2023, amending the Municipal Tax Code to reduce from 5% to 2%, the ISS (tax on services) rate of the following services, referred to in article 33, item II of the Code:
a) services for the development and audit of carbon credit projects;
b) carbon credit registration and certification services;
c) services for providing carbon credit transaction platforms;
d) greenhouse gas emission inventory services and greenhouse gas emission inventory auditing.
Furthermore, the ISS Neutral Program has been temporarily instituted, with the aim of encouraging the purchase of carbon credits by ISS taxpayers to amortize the tax due.
The credits acquired will be assigned in the Rio de Janeiro’s municipality Electronic Services Invoice system (Nota Carioca).
Finally, the said program will come into force after regulation by the Executive Branch and will be valid until 31 December 2030 or until the target for reducing emissions of polluting gases to be determined in accordance with the regulation is reached, whichever occurs first.
