Thirty-one ICMS rules, tables by type of incentive and by state, a timeline to 2033, and what to record in SAP, each point with the official source.
We describe the rule. We do not advise on tax positions: the tax decision belongs to the client.
Tax, IT, management and legal teams look for different answers in the ICMS rules.
Which rule supports an incentive, a credit or the DIFAL, and where the official source is.
Go to the sectionWhat the calculation and the master data must represent: validity by state, an incentive with its source act, a dated CEST and DIFAL per invoice.
Go to the sectionWhat changes on a date (2026, 2029 to 2032) and what is already repealed, so you can plan without relying on memory.
Go to the sectionWhat DFSpro does and what stays with the client.
Go to the sectionUse the search or the filter to find a rule by name, number or subject.
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The general rule of the tax and the rule on credit, reversal and fixed assets.
Rate, base and credit rule by state need dated validity in the master data and in the calculation. The interpretation belongs to the client.
The credit and reversal rule lives in the setup by CFOP and entry type. Check that each case in art. 21 has a trigger in the process.
Each asset needs an entry date and a credit amount, and the share changes every month. Writing off the asset stops the future installments.
Who can grant an ICMS incentive, how the old incentives were validated, and examples of agreements and of states, with the official source.
Non-compliance makes the act void and the credit of the buyer of the goods ineffective (art. 8, I). The incentive record must keep the act that supports it.
The end date depends on how the incentive is classified, which is for the state. The system needs an end date per incentive. The two deadlines, side by side, are in State incentives in SAP.
Cl. 10, § 5, brings a 20% yearly reduction from 01/01/2029 for commercial, raw agricultural and port activities. Keep the source act, validity and end date.
The classification is made by the granting state (cl. 11), and another state can challenge it within 180 days. The record needs the category and the end date of each incentive.
Cl. 4 waives the reversal of the entry credit, and cl. 5 orders the destination state to reduce the DIFAL base to the same domestic burden. Reversal by state is a rule to set up.
Cl. 4 gives a presumed credit to the establishment that receives the product with a reduced base when its own state does not grant an equal reduction. Cl. 3-A, added by Agreement 26/21, sets a 4% burden for fertilizers and manure and keeps it for acids and sulfur, whose item II of cl. 1 was repealed; cl. 3-B conditions the reduction on imports. The incentive applies by NCM and by use.
In these four states the reversal waiver is optional. Anyone who ships or receives machinery from them needs a reversal rule by state, with a cut-off on 01/05/2026.
The incentive of 100/97 has an end date of 31/12/2027. The record needs it by NCM, and the reduction rule must stop applying at the turn of the year.
The incentive is by resolution and type of treatment. Keep the resolution, scope and period by establishment. The decree is not the individual resolution.
An example of an incentive with a deadline and a basis in its own text: the record needs both fields.
It is a financial incentive: the calculation separates the incentivized ICMS, booked separately, from the normal one. Late payment of the normal part makes the incentivized part of the month lost (art. 9-A).
It is a financial incentive: the record separates the tax due from the financed amount. The financed amount depends on a contribution to the Protege Goiás fund, at the rates of Law 18.360/2013 (up to 15% of the incentive, Law 20.367/2018). The period and installment stay in the contract.
The rate difference on sales to a non-taxpayer end consumer in another state and the revenue sharing that Amendment 87 set until 2019.
Credit from earlier stages offsets only the origin's debit (art. 20-A). Under art. 24-A, § 4, the effects start on the 1st business day of the 3rd month after the states' portal becomes available.
Anyone registered in the destination pays by the 15th day of the next month (cl. 6, § 2). With no exit date on the document, the issue date applies (cl. 5, § 4).
The calculation must know, by item and state, whether there is an agreement incentive at the origin or destination and whether it reduces the DIFAL base.
A document from a period before 2019 can carry sharing between origin and destination. Reprocessing or auditing those years needs a percentage by year.
The general rule on tax substitution (ST), the base calculation, the refund, the most recent CEST change and what is already repealed. For the SAP side, see ICMS-ST and DIFAL in SAP.
The classification changes by agreement, so NCM and CEST need validity dates in the master data.
The same NCM now has a different CEST by product. The record needs a dated CEST and the São Paulo exception.
A rule inherited in a migration or rollout can cite a repealed agreement. List the legal basis cited in the ST rules.
The due date of the ST payment slip is a state rule, and the due date record by state must respect the minimum. The partner's regime (Simples or not) also enters the calculation.
If the state does not decide the refund request in 90 days, the substituted party can take credit for the updated amount (art. 10, § 1). A final adverse decision requires reversal within 15 days (§ 2). The process needs a trigger for the credit and for the reversal.
The refund can be made by a dedicated NF-e against the substitute supplier, at the discretion of the state of the taxpayer entitled to the refund, with prior authorization within 90 days (cl. 15). A sender under Simples uses the MVA of domestic operations (cl. 11, § 1). MVA and PMPF change by state and item.
What changes in ICMS from 2029 to 2033, the incentive compensation fund, the credit balance and the ST inventory on 31/12/2032.
The system must keep the base rate of 31/12/2028 and the percentage of each year. The double clock (deadline of the act and reduction) is in State incentives in SAP.
The withheld amount must be traceable by item (art. 143). With no match to the entry, the average of the entries of the last 3 months applies (§ 1).
Two clocks run together: the base rate of 31/12/2028 and the percentage of each year. LC 87, art. 31-A, repeats the reduction of 10%, 20%, 30% and 40%.
Anyone who fails to meet the condition of the granting act on time loses the right (EC 132, art. 12, § 5). The record must keep the date of the act, the conditions and the final term of each incentive.
The risk-based hold cannot reach more than 20% of the month's amounts, except with objective signs of irregularity (art. 392, § 11). The right to ask for compensation expires in 3 years (art. 391, § 3).
A credit balance from an incentive or CIAP needs the origin date, amount and approval status by state. The form and deadlines depend on the complementary law.
Deadlines and percentages for ICMS, incentives and the compensation fund, from 2026 to 2033.
IBS at 0.1% and CBS at 0.9% (EC 132, art. 125). Agreement 52/91 applies until 31/12/2026 and 107/26 takes effect on 01/11/2026. Requests to qualify for the fund start on 01/01/2026. Fund: BRL 16 billion.
IBS at 0.05% state and 0.05% city, in 2027 and 2028 (EC 132, art. 127). The Selective Tax enters the ICMS base on 01/01/2027 (LC 87, art. 13, § 1, III). Agreement 100/97 applies until 31/12/2027. Fund: BRL 24 billion.
Last year to request qualification for the fund (LC 214, art. 388). On 31/12/2028 the ICMS base rates are fixed for the reduction (LC 87, art. 31-A). Fund: BRL 32 billion.
ICMS at 9/10 of the rates (EC 132, art. 128) and incentives cut by 10% (LC 87, art. 31-A). Fund compensation starts on 01/01/2029. Fund: BRL 32 billion.
ICMS at 8/10 of the rates and incentives cut by 20%. Fund: BRL 24 billion.
ICMS at 7/10 of the rates and incentives cut by 30%. Fund: BRL 16 billion.
ICMS at 6/10 and incentives cut by 40%. Fund: BRL 8 billion. On 31/12/2032 the cap of Agreement 190/17 expires, and the ST inventory (LC 227, art. 142) and the credit balances (EC 132, art. 134) are determined.
ICMS is abolished (EC 132, art. 129). The approved credit balances are offset against IBS in 240 monthly installments, or over the remaining CIAP period (art. 134, § 3).
The types follow the list of kinds in the first clause, § 4, of Agreement 190/17, with examples of agreements and states.
| Type of incentive | Example | How the rule describes it | What the record keeps |
|---|---|---|---|
| Reduction of the tax base | Agreements 52/91 and 100/97 | Final burden at a fixed percentage (5.14%, 8.80%, 4.1%, 7.0% or 5.60%) or a base reduced by 60% and by 30%. | Percentage by NCM and by operation, and the same burden in the destination DIFAL (52/91, cl. 5). |
| Presumed or granted credit | Minas Gerais, RICMS/2023, Annex IV | Credit equal to the reduced part (item 1), a burden of 0.1% (item 2) or 20% of the tax on the service (item 3). | Case, percentage, effectiveness and grounds, with a term on 31/12/2032. |
| Deferral | Santa Catarina (Decree 105/2007) and Bahia (Law 7.980/2001, art. 2, II) | Booking and payment of the tax are postponed. In Santa Catarina the deferral can be partial and cover freight. | Resolution or classification act, scope and period by establishment. |
| Extension of the payment deadline | Santa Catarina (up to 24 months, interest-free, for industrial projects and distribution centers serving the South and Southeast, art. 13) and Bahia (up to 90% of the balance due, for up to 72 months) | Part of the ICMS calculated is paid after the ordinary due date. | Incentivized part booked separately and the deferred deadline (Bahia, art. 5, II). |
| Tax financing | Goiás (Law 13.591/2000) | The state contributes to the fund up to 73% of its share of the tax paid by the beneficiary, and the fund finances the project. | Contract, monthly installment, final use date and contribution to Protege Goiás. |
| Exemption by agreement | Agreement 153/15 | Exemption and base reduction authorized by agreement enter the DIFAL calculation, at the origin or at the destination. | Incentive by item and by state, and whether it reduces the DIFAL base. |
| Forgiveness, amnesty and reinstatement | Agreement 190/17, cl. 8 and 9 | Forgives the credits of incentives created without an agreement up to 08/08/2017 and allows them to be reinstated by state law. | Source act, reinstatement date, and registration and filing at Confaz. |
Incentive code, CEST, ST, DIFAL and CIAP: what the rule asks for and what the SAP documentation describes.
Some states require the ICMS tax incentive code in the NF-e XML. In SAP S/4HANA, the activity Maintain Benefit Code for ICMS Tax creates the codes by region, with the state code and the description. The code must exist in the right region.
The CEST has 7 digits and identifies the ST item (Agreement 142/18, cl. 6, IV). It goes on the tax document of each item in annexes II to XXVI, even without ST (cl. 20, I). The SAP Best Practices for the Brazil Nota Fiscal has the activity Determine CEST.
SAP S/4HANA derives the ST rate from the tax code, the customer or vendor record and the plant. With no ST rate, it does not calculate: there is no default rate, as there is for IPI, ICMS and ISS. The base follows Agreement 142/18, cl. 11.
The DIFAL is eligible for CIAP credit in SAP S/4HANA Cloud, alongside normal ICMS, ST and freight. The rule asks for the destination's domestic rate on the total and the difference to the destination (Agreement 236/21, cl. 2).
The default CIAP period in SAP is four-year, at most 48 months. With the limitation period defined, the limit is 60 months. After the limit, the balance goes to expense or to the original account. LC 87, art. 20, § 5, sets 1/48 per month.
The SAP S/4HANA documentation for Brazil (2025 FPS02) has a customizing chapter for CBS and IBS next to the ICMS chapter. ICMS coexists with IBS until 2032, with the rate reduced each year (LC 87, art. 31-A).
Santa Catarina, Minas Gerais, Bahia and Goiás, with the rule, what it grants and the limits of the official text.
| State | Rule | What it grants | Deadlines and limits of the official text |
|---|---|---|---|
| Santa Catarina | Decree 105/2007 (Pró-Emprego), see the rule | Differentiated ICMS tax treatment for setting up, expanding, restarting and modernizing, with deferral. The extension of up to 24 months, interest-free, applies to industrial setup, restart or expansion and to distribution centers serving the South and Southeast (art. 13). | The resolution sets the treatment and the period in force. Project execution starts within 12 months of publication of the resolution (art. 5, § 2). |
| Minas Gerais | RICMS/2023, Annex IV, Part 1, see the rule | Presumed credit cases of art. 45, with columns for case, credit, effectiveness and grounds. | Items 1, 2 and 3 are effective to 31/12/2032, based on Agreement 190/17 and Decree 47.394/2018. |
| Bahia | Law 7.980/2001 (Desenvolve), see the rule | Extension of up to 90% of the monthly normal ICMS balance due, for up to 72 months, and deferral. | Use of up to 12 years (art. 6). Late payment of the normal part makes the incentivized part of the month lost (art. 9-A). |
| Goiás | Law 13.591/2000 (Produzir), see the rule | Financing for industrial projects with Funproduzir funds. | No new grants since 03/05/2021 (Law 20.997). The cut-off date for use is the one in art. 3, § 2, of LC 160 (art. 19). |
The tax position is the client's decision.
Six pages on the SAP side of incentives, calculation, CIAP, DIFAL, setup and CEST.
For LC 24, LC 160, Agreement 190/17 and art. 31-A: types of incentive, deadlines and the double clock to 2032.
For LC 87, arts. 19 to 21: how debit and credit become a balance and a payment slip.
For art. 20, § 5: how SAP tracks the monthly installment of the fixed asset.
For LC 190 and Agreements 236/21 and 153/15: how the rate and the DIFAL arise on the tax document.
For an incentive with a source act and validity by state: where the rule is set up.
For Agreements 142/18 and 107/26: how the ST classification enters the master data.
Complementary laws and the constitutional amendment on Planalto, agreements on Confaz, and the laws of Santa Catarina, Minas Gerais and Bahia on the state portals.
The cap is 31/12/2032 in categories I to IV of clause 10 of Agreement 190/17. The period of your incentive comes from the state's act and can be shorter, so keep the end date of each one in the SAP master data.
In categories I to IV, clause 10 of Agreement 190/17 allows granting and extending up to 31/12/2032, and acts with a longer period must be adjusted (§ 1). The state classifies the category, and another state can challenge it within 180 days (cl. 11).
It forgives credits from incentives created by law published up to 08/08/2017 (cl. 8) and allows them to be reinstated, with the acts registered at Confaz (LC 160, art. 3). Keep which act supports each incentive.
LC 24/1975 (art. 1) accepts only exemption, base reduction and presumed credit granted by an agreement ratified by the states and the Federal District (DF). Without it, the act is void and the credit of the buyer of the goods is ineffective (art. 8, I).
LC 87, art. 20, § 5, orders the fixed asset credit to be taken at 1/48 per month, times the share of taxed outbound sales. The fraction changes every month, and SAP needs the right share at each close.
LC 190/2022, which puts payment of the difference on the sender (art. 4, § 2, II, of LC 87). Agreement 236/2021 sets the procedure, with GNRE on exit (cl. 5), and 153/2015 covers the agreement incentive in the calculation.
Only if you sell stoves or parts (NCM 8516.60.00 or 8516.90.00), which get new CEST codes in Agreement 142/18, except in São Paulo (cl. 3). Effect on the 1st day of the 2nd month after publication (cl. 4): 01/11/2026.
No. 81/93 and 92/15 were repealed from 01/01/2018 by 52/17, and 52/17 was repealed by 142/18 (cl. 34). If a rule in your SAP cites one of them, review the legal basis.
Yes, extended to 31/12/2026 by Agreement 10/26 (ratified in the DOU of 19/02/2026). PR, RS, SC and SP may choose not to apply it, with effect from 01/05/2026 (second clause of 10/26). In those states, reversal is a rule to set up by state.
Yes. Agreement 79/25 extended 100/97 to 31/12/2027 (cl. 1), ratified in the DOU of 25/07/2025. The 60% base reduction for pesticides, vaccines and feed applies until that date.
Agreement 142/18 (cl. 11) allows the PMPF, the final price suggested by the producer or importer, or the sender's price with freight, insurance and charges plus the MVA of the destination state. The choice follows the destination's law.
Yes. LC 87, art. 10, ensures a refund, and with no decision in 90 days the substituted party can take credit for the updated amount (§ 1). Agreement 142/18 provides for the refund by a dedicated NF-e (cl. 15).
LC 123/2006, art. 21-B, requires the states to give at least 60 days, counted from the 1st day of the month of the taxable event, for the due date of ICMS on ST, single-stage collection and advance payment. The deadline of each state must be in the SAP master data.
Art. 31-A of LC 87 cuts the rates by 10%, 20%, 30% and 40% over the four years, from the rates of 31/12/2028, and the incentives fall in the same proportion. Confaz must regulate how this applies to the incentive percentages (§ 5).
Created by art. 12 of EC 132, it compensates from 2029 to 2032 anyone with an ICMS incentive for a fixed term and under conditions. The Union pays in BRL 8 billion in 2025, reaching BRL 32 billion in 2028 and 2029, in amounts adjusted by the IPCA.
The holder of an onerous incentive granted up to 31/05/2023, with use to 31/12/2032. The qualification request to the Federal Revenue runs from 01/01/2026 to 31/12/2028 (LC 214, arts. 388 and 389), with prior statement by the granting state.
Art. 134 of the ADCT orders the balances existing at the end of 2032 to be used, as long as the state approves them. The IBS Steering Committee offsets them in 240 monthly installments, or over the remaining period for fixed assets.
Art. 142 gives credit for the ICMS withheld on the inventory of 31/12/2032, in 12 monthly installments. Art. 144 requires an inventory by establishment, sent to the state and to the CGIBS, with the form and deadlines in the single IBS regulation.
SAP S/4HANA has the configuration activity Maintain Benefit Code for ICMS Tax, which creates incentive codes by region for the states that require the code in the NF-e XML. The code must be in the right region.
No. DFSpro configures SAP and proves the result with tests. Saying whether the incentive applies, how it is classified and which tax position to take is the client's decision, with its state and its advisors.
If you have an incentive, a CEST or a DIFAL that the system calculates without pointing to the rule, the conversation with DFSpro can start from it. The tax decision stays with you.