The State of São Paulo welcomed 2025 with key updates to its legislation. Throughout December 2024 and January 2025, decrees 69.207, 69.208, 69.268, 69.269, 69.274, 69.287, 69.288/2024, 69.289, 69.291, 69.292, and 69.293 were enacted, implementing significant changes to state laws. A primary feature of these updates is the extension of various fiscal benefits, which were set to expire on December 31, 2024, without these legislative amendments.
Moreover, these decrees have introduced substantial modifications affecting taxpayers across diverse sectors:
² ICMS is a state tax with rates that vary according to the legislation of each federal unit. It applies to sales and services and covers the circulation of goods, transportation, communication services, and other general provisions of goods. Fiscal benefits granted by states may include exemptions, reductions in the tax base, and presumed credits.
All fiscal benefits that were extended or expired on 31 December 2024 can be found on the São Paulo State Finance Secretary’s website.
Glossary:
Fiscal Benefits – Financial advantages provided by the government, such as tax exemptions, deductions, or credits, intended to support economic activities or policies.
Decrees – Official orders issued by a government authority or leader, which have the force of law.
ICMS (Tax on the Circulation of Goods and Services) – A state tax in Brazil that applies to the movement of goods, transportation, and communication services, varying by state.
Maintenance of Credit – In tax terms, the ability to retain tax credits from transactions to offset future tax liabilities.
Liquefied Petroleum Gas (LPG) – A type of fuel commonly used for heating, cooking, and vehicle fuel that is subject to specific tax regulations.
ICMS Regulation of the State of São Paulo – The set of rules governing the application of the ICMS tax within São Paulo, including specific provisions for various goods and services.
Decree 45.490/2000 – A specific legislative document in São Paulo that outlines the regulations for ICMS tax.
Agricultural Inputs – Materials used in the agricultural industry, such as fertilizers and seeds, which may receive tax benefits to support farming activities.
Effective Date – The date on which a law, decree, or regulation comes into force.
São Paulo State Finance Secretary – The state government office responsible for managing São Paulo’s public finances, including tax collection and fiscal policy.
Annex I and II of Decree 45.490/2000 – Specific sections of the decree that detail tax exemptions and reductions for various goods and services.
