For those working in the mineral sector, tax management is vital. In addition to traditional taxes and CFEM, which is a federal charge, there is the state levy: the Mineral Resources Supervisory Fee (TFRM).
In this article, we will clarify what this fee is, why it is charged, and how it differs from other charges in the sector.
1. What is the TFRM?
The TFRM is a fee established by certain Brazilian states (such as Minas Gerais, Pará, and Amapá) based on the so-called “Police Power”. Unlike a common tax, which goes to the government’s general fund, the TFRM is a “counter-performance” fee.
The objective is: To finance the control, monitoring, and supervisory activities of the research, mining, and exploitation stages carried out by state agencies.
The Legal Foundation
Although the Union has exclusive competence to legislate on deposits and mines, Article 23 of the Federal Constitution establishes that it is the common competence of the Union, States, and Municipalities to register, monitor, and inspect the concessions of rights for research and exploration of water and mineral resources.
2. TFRM vs. CFEM: Do Not Confuse the Charges
Despite falling on the same activity, they have completely different legal natures:
| Feature | CFEM | TFRM |
| Nature | Royalties (Financial Compensation). | Fee (Police Power). |
| Purpose | To compensate the Union, States, and Municipalities for the exploitation of a finite resource. | To fund the state apparatus for the supervision of the activity. |
| Calculation Base | Gross revenue (net of taxes). | Production volume (Tons of ore extracted/sold). |
| Jurisdiction | Federal (ANM). | State (Treasury / Environment Departments). |
3. How is the Fee Calculated?
The calculation base of the TFRM is not profit or revenue, but rather the quantity of ore. Generally, the calculation works as follows:
- Unit of Measurement: Metric ton of extracted ore.
- Indexer: The value is linked to a state fiscal unit (e.g., UFEMG in Minas Gerais, UPF in other states).
- Periodicity: Payment is usually monthly, via a state collection guide.
Important: Each state has its own list of minerals subject to the fee and those that are exempt (commonly, construction materials and small-scale operations may have different rules).
4. The Constitutionality
For a long time, the industrial sector questioned whether states had the right to create this fee, claiming it could be confused with a tax on production (which would be unconstitutional).
However, the Supreme Federal Court (STF), through ADIs 4785, 4786, and 4787, confirmed that the TFRM is constitutional. The understanding is that the State does have the duty and the cost to supervise the impact of mining in its territory, and the fee serves to cover this service.
5. Ancillary Obligations: The State Registry
Paying the fee is not enough. To remain in compliance, the miner must be registered in a specific state registry (usually called CERM – State Registry of Control, Monitoring, and Supervision).
The lack of registration or delays in payment can lead to:
- Heavy fines on the undeclared volume.
- Impediments in obtaining state environmental licenses.
- Enrollment in the state tax debt registry.
Do you have any doubts left about this state fee? Contact us for specialized consulting!
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