Brasília – The House of Representatives approved Bill No. 4719/2020, which exempts from federal taxes the donation of medicines to public administration entities at the federal, state, and municipal levels, as well as to organizations recognized as being of public utility. The measure now proceeds to presidential sanction.

Authored by former Congressman General Peternelli, the proposal covers donations made to charitable organizations certified under Complementary Law 187/2021, social organizations established by Law 9.637/1998, and civil society organizations recognized under Laws 9.790/1999 and 13.019/2014.

The exemption applies to three federal taxes: PIS/Pasep, Cofins, and the Tax on Industrialized Products (IPI). To qualify, donations must be made exclusively to authorized entities, and the medicines must have at least six months of remaining shelf life. The products must be used strictly for non-commercial, assistance-related purposes, and donations directly to individuals are prohibited.

The Executive Branch will regulate the new law, including oversight and control mechanisms to ensure the proper use of the donated products.

Source: NK Consultores