Legal Definitions - bonification

Bonification is a tax remission that is usually applied to goods that are intended for export. This means that the tax on the goods is waived, allowing them to be sold in a foreign market as if they had not been taxed.

For example, if a company in the United States wants to export a product to Europe, they may be eligible for bonification. This would mean that they would not have to pay the taxes that would normally be applied to the product, making it more competitive in the European market.

Another example would be a farmer in Australia who wants to export their crops to Asia. If they are eligible for bonification, they would not have to pay the taxes that would normally be applied to their crops, making them more affordable for buyers in Asia.

Bonification is a way to encourage exports by reducing the cost of goods for foreign buyers. By waiving the taxes that would normally be applied to the goods, they become more competitive in the global market. This can help businesses and farmers to expand their customer base and increase their profits.