State and Local Tax Updates

Federal

Confaz publishes ICMS Agreements on exemptions, administrative settlement, and installment payment programs

The National Council for Fiscal Policy (Confaz) published an order disclosing the ICMS Agreements approved at the 423rd Extraordinary Meeting, held in April, which address the granting of exemptions, administrative settlement, and installment payment programs of ICMS debts by certain states.

Among the published agreements, particular emphasis should be given to the inclusion of the State of Espírito Santo in the list of entities authorized to establish administrative settlement for the resolution of disputes related to the collection of ICMS credits.

In addition, the States of Acre and Rondônia were authorized to establish programs for installment payment and reduction of penalties and legal charges relating to ICMS debts arising from taxable events occurring through December 31, 2025.

Amapá

Amapá updates list of equipment benefiting from ICMS exemption for the solar and wind sectors

On April 8, 2026, the State of Amapá published a decree updating the rules for granting ICMS exemption on transactions involving equipment and components intended for solar and wind power generation.

The amendments mainly consist of updating the description and tax classification of certain products covered by the benefit, in line with ICMS Agreement No. 101/1997 and its subsequent amendments. The updated items include solar water heaters, direct-current photovoltaic generators, assembled and non-assembled photovoltaic cells, and parts and components used in wind turbines and photovoltaic generators.

The decree also revokes provisions of the previous rule, adjusting the list of benefited goods and the regulation of the incentive. The measure entered into force on the date of its publication.

Ceará

Ceará includes wholesalers of cosmetics and perfumery products in the tax substitution regime with a net tax burden

In a decree published on April 17, 2026, the State of Ceará included CNAE-Fiscal 4646-0/01, corresponding to the wholesale trade of cosmetics and perfumery products, in the ICMS tax substitution regime with a net tax burden.

With this inclusion, taxpayers classified under such activity become subject to the state tax substitution system with a net tax burden, with effects on the calculation of ICMS due on transactions carried out by wholesale establishments in the sector.

The rule entered into force on the date of its publication.

Ceará extends effectiveness period of ICMS benefits for the agricultural sector

In a decree published on April 28, 2026, the State of Ceará extended several ICMS tax benefits through December 31, 2026.

Among the main measures extended, particular emphasis should be given to the ICMS exemption on outbound transactions involving agricultural inputs and the 60% reduction of the tax calculation base on interstate outbound transactions involving such inputs.

The rule entered into force on the date of its publication, with retroactive effects as from July 25, 2025.

Maranhão

Maranhão eases, for 2026, ICMS tax incentives requirements linked to federal tax relief

On April 10, 2026, the State of Maranhão published an Administrative Resolution amending the State ICMS Regulations to address the fulfilment of conditions set forth in ICMS agreements for the use of tax incentives.

The rule provides that, from January 1, 2026 to December 31, 2026, conditions requiring the exemption from, or reduction of, the tax burden of federal taxes will be deemed satisfied when non-compliance results from the linear reduction of federal tax incentives and benefits introduced by Supplementary Law No. 224/2025.

In practice, the measure seeks to preserve the use of ICMS tax incentives that depend on the maintenance of a certain level of federal tax relief, even if that condition is not fully met as a result of the linear reduction of federal tax incentives and benefits under Supplementary Law No. 224/2025.

Mato Grosso

Mato Grosso conditions ICMS benefits on taxpayers’ labor compliance

On April 14, 2026, the State of Mato Grosso amended the legislation governing the conditions for enjoyment of ICMS tax benefits, introducing taxpayers’ labor compliance as an additional requirement.

As a result of the amendment, in addition to the requirements already in force, the beneficiary may not be listed in the Register of Employers that have subjected workers to conditions analogous to slavery, provided that there is a final administrative or judicial decision, with the right to adversarial proceedings and full defense ensured.

Paraíba

Paraíba extends deadline for issuance of NF-e in fuel transactions by waterway transport

On April 23, 2026, the State of Paraíba amended the special regime applicable to establishments classified under CNAEs 0600-0/01, 1921-7/00, and 3520-4/01, relating, respectively, to extraction of petroleum and natural gas, manufacture of petroleum refining products, and production and processing of natural gas.

The amendment covers transactions involving petroleum, its derivatives, natural gas, and biofuels carried out by cabotage, river, or lake navigation. As a result of the change, the deadline for issuance of the Electronic Invoice (NF-e) by the sender was extended from one to two business days, counted from completion of unloading.

Paraná

Paraná regulates purchase of accumulated ICMS credits for exporters affected by United States tariffs

On April 7, 2026, the State of Paraná published a decree establishing the rules for the acquisition, by the Public Treasury, of accumulated ICMS credits recorded in the Accumulated Credit Transfer and Utilization Control System (Siscred), held by exporting companies affected by tariff measures imposed by the United States.

The normative act provides that the assignment of such credits will occur with the application of a 30% discount, with the payment deadline to the taxpayer to be established in a subsequent act.

According to the decree, payment will be subject to the global limit of BRL 150 million in qualified credits, in addition to specific conditions and individual limits to be defined by a Resolution of the Finance Secretariat, which will be responsible for operationalizing the payments.

The rules entered into force on the date of publication of the decree and will produce effects for 120 days, counted from publication of the relevant Resolution.

Piauí

Piauí updates ICMS rules on credits under special regimes

On April 22, 2026, the State of Piauí amended the ICMS Regulation to introduce an exceptional case for appropriation of tax credits by taxpayers subject to special regimes that, as a rule, prohibit crediting.

Subject to prior authorization by the Finance Secretariat, the use of credits linked to cultural, social, sports, and tourism tax incentives, as well as other credits previously authorized and approved, is now allowed.

The rule provides that use of such credits does not waive compliance with the other conditions of the special regime. In the event of non-compliance, the credits may be disallowed and the tax may be collected with the applicable legal charges. The act also regulates bookkeeping of the credits in the EFD through specific codes.

Piauí excludes construction materials and food sectors from the ICMS tax substitution regime

On April 22, 2026, the State of Piauí amended the ICMS Regulation to exclude several items in the construction materials and food segments from the tax substitution regime, with effects as from June 1, 2026.

For companies holding inventories of such goods with ICMS-ST already collected on May 31, 2026, procedures were established for inventory taking, valuation, and appropriation of credits. Such credits must be booked in the EFD in installments, as provided for in the state regulation.

Rio Grande do Sul

Rio Grande do Sul updates rules for issuance of invoices in network assignment transactions

On April 17, 2026, the State of Rio Grande do Sul amended the instructions relating to the issuance of tax documents for purposes of collecting ICMS levied on network capacity assignment services.

As a result of the amendments, taxpayers must issue the Communication Services Invoice, model 21, the Telecommunication Services Invoice, model 22, or the Electronic Invoice-Bill for Communication Services, model 62, in the month following the occurrence of the transactions.

In addition, the use of specific item classification codes in the corresponding tax files becomes mandatory, as provided for in the applicable state regulation.

The amendments entered into force on the date of their publication.

Rio Grande do Sul changes application of ICMS tax substitution to cosmetics in transactions with the Federal District

On April 27, 2026, the State of Rio Grande do Sul published a decree excluding the Federal District from the ICMS tax substitution regime applicable to transactions involving perfumery, personal hygiene, and cosmetics products carried out between taxpayers of the two federative units.

The amendment results from the Federal District’s withdrawal from ICMS Protocol No. 54/2017, which governs the tax substitution applicable to such goods. As a result, these transactions are no longer subject to the advance tax withholding model.

The measure produces effects from May 1, 2026 through September 30, 2026. After this period, as already provided for in a prior normative act, the tax substitution regime applicable to such goods will be fully discontinued, and transactions will be taxed under the regular ICMS regime as from October 1, 2026.

Santa Catarina

Santa Catarina regulates temporary waiver of ICMS collection linked to tax benefit targets

On April 13, 2026, the State of Santa Catarina regulated the application of ICMS Agreement No. 149/2025, which authorizes the states not to require ICMS tax credits arising from non-compliance with conditions for enjoyment of state tax benefits.

The regulation establishes, for a limited period of up to 180 days counted from April 10, 2026, the non-requirement of the tax due as a result of non-compliance with economic or financial targets linked to tax benefits granted to the industrial sector.

The measure covers taxable events occurring through December 31, 2024 and applies to programs and incentives provided for in different state normative acts, including deferral regimes, deemed tax credits, and other benefits provided for in the State ICMS Regulation.

To enjoy the waiver, the taxpayer must pay the ICMS due without application of the benefit, plus legal charges proportional to the degree of non-compliance with the targets, in addition to formalizing withdrawal from administrative and judicial disputes related to the matter.

The amount may be paid in full or in up to 60 installments, with no possibility of offsetting. Default results in loss of the benefit and full recomposition of the debt. Adhesion is optional, carried out through a specific declaration, and does not authorize refund or offset of amounts already paid.

São Paulo

São Paulo expands cases for use of accumulated ICMS credits

In a decree published on April 15, 2026, the State of São Paulo amended the ICMS Regulation to expressly include the possibility of settling ICMS tax debt relating to tax withheld under the tax substitution regime through use of accumulated ICMS credits.

As a result of the amendment, settlement of ICMS-ST debts with accumulated ICMS credits is now allowed, provided that the debts have been subject to a tax assessment notice and imposition of penalty or are already enrolled in active debt collection.

The rule entered into force on the date of its publication, with immediate effects.

Tocantins

Tocantins expands cases for transfer of ICMS credits to exporters

On April 15, 2026, the State of Tocantins amended the ordinance governing the transfer of accumulated ICMS credits arising from exports carried out by rural producers and cooperatives.

As a result of the amendment, full transfer of the credit balance was allowed, replacing the previous limitation. In addition, the restriction preventing the transfer of credits when the sending or receiving establishment had ICMS debts was revoked, including in situations in which enforceability was suspended or guaranteed.

Tocantins waives FET contribution for industries using local inputs

On April 15, 2026, the State of Tocantins published amendments to the rules of the State Transportation Fund (FET), providing for waiver of the contribution by industries benefiting from a special regime that use raw materials produced within the state and also contribute to the Economic Development Fund.

The measure is already in force, with retroactive effects as from January 11, 2024, subject to the limitations provided for regarding the scope of retroactivity.

This material is for informational purposes only. Our Consumption Tax team is available to provide specific legal advice.