Provisional Measure 907 was approved last Tuesday (April 28) by the Federal Senate, which turns Embratur into a Brazilian Agency for International Tourism Promotion. With the change, the agency becomes an Autonomous Social Service, under private law. The new Agency will be supervised by the Ministry of Tourism. The text establishes that, in the event of a state of emergency decree and, up to six months after the end of this situation, Embratur is authorized to exclusively promote domestic tourism, including through agreements with states, the Federal District and municipalities , under the coordination of the MTur. The new law now goes to presidential sanction.
“Embratur’s transformation into an agency is a victory for the tourism sector, so punished by the coronavirus. I am convinced that a stronger, more agile and modern Embratur will be crucial for the moment of resumption of both domestic and international tourism. More than ever, this change is related to the survival of our sector, which corresponds to 8.1% of the Brazilian GDP ”, evaluated the Minister of Tourism, Marcelo Álvaro Antônio.
The text also makes it possible for Embratur to assist in the process of repatriation of Brazilians unable to return to the country, in cases of enactment of a state of emergency, such as Covid-19, under the coordination of the Ministries of Foreign Affairs and Tourism , in conjunction with the National Civil Aviation Agency and the Ministry of Justice and Public Security.
Tax benefits
The text also confirms important tax benefits, such as the reduction of the withholding income tax rate (irrf) related to aircraft and engine leasing, a type of rental of these items by airlines. the wording approved by the national congress reduced this rate to zero, as of January 1, 2021. without the MP this percentage would be 15%.
Another achievement was the maintenance of 6% of the IRRF rate on remittances abroad by individuals or legal entities, to pay for personal expenses of people residing in the country and who are traveling. Without the MP, the travel agencies and the Brazilian would have to pay the percentage of 25%, related to the purchase of travel packages and the contracting of services outside the country.