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The Municipal Fiscal War: be careful, it can be a risk for you

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3/8/2017 12:00 AM Article

The "fiscal war" among Brazilian states is widely reported by the media and, fot his reason, it is well known by national businessmen. However, as it involves the discussion of the legality of ICMS tax benefits granted by the states to companies engaged in the commercialization of goods, generally their debate gains importance only in the scope of companies that operate in industry, import and trade.

However, although many are unware, there is also a "fiscal war" among the municipalities of Brazil. This "war" can be defined by the dispute between two (or more) cities for the result of the collection of ISS (Tax on Services), a municipal competence tax that is due on the revenues earned by the companies that provides services.


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