Payments of commission made by Brazilian exporters to a commercial agent/representative resident or domiciled abroad for services of business intermediation are not subject to taxation of Social Contribution on Imports. The concept is that there is no service provided in Brazil or whose result is verified in the country.
The relevant for such tax is the concept of importing services. It applies when the service is performed in Brazil, or when performed abroad, and the actual result of which is verified in the country.
The Brazilian IRS clarified the scope of the expression “result of which is verified in Brazil”. It is necessary to have a factual relationship between the result generated by the provision of services abroad and the Brazilian territory. The term “factual relationship” is used here to counter the “economic relationship”.
“Factual relationship” covers: (a) the physical entry into the Brazilian territory of the result of the service (service that generates a material good or in the case where people or goods are benefited by services performed abroad); and (b) the virtual entry into the national territory of the result of the service (cases in which the result of the service is immaterial, such as software, music, etc.).
On the other hand, for the incidence of taxes it is not enough that the service produces only an “economic result” in the Brazilian territory, because if this were the case any service contracted by a Brazilian legal entity with foreign providers would have its result verified in Brazil.
Service provided by foreign representatives begins with the search for new customers abroad and ends with the acquisition of that customer. In other words, it does not matter that the final economic result is given to the Brazilian company in the Brazilian territory.