Federal Laws
INSTRUMENTS | DEFINITION | BENEFICIARIES | LEGISLATION |
| Reduction of Import Tax (II) for machines not produced in | The rate of Import Duty may be reduced from 14% to 2% for the purchase of Capital Goods, IT and Telecommunications Goods, not produced in | Industrial companies and service providers | Resolution 8, of March 22, 2001 |
| Waiving of Tax on Industrialized Products (IPI) for machines and equipment | The rate of Tax on Industrialized Products (IPI) for capital goods has been reduced to zero | Industrial companies, users of capital goods | Decree 4955/2004 - of January 15, 2004 – from 5% to 3.5% for 643 items, and from 12% to 8% for 8 items Decree 5173/2004 of August 6, 2004 – from 3.5% to 2%, adding to the list over 29 items of capital goods. Decree 5468/2005 of June 15, 2005 – from 2% to zero, for the previously covered items. Decree 5552/2005, of September 26, 2005 – added 7 items to the list of capital goods, and one item in the software sector. Decree 5.618/2005, of December 13, 2005– added 14 items to the list of capital goods |
REPORTO | Special Tax Rules - aims essentially to reduce tax on purchases of machines and equipment, by waiving IPI, Cofins, PIS/Pasep and import duties (in the case of equipment for which no similar national product exists). | Targeted at investment in ports | Law 11.033, of December 21, 2004 Decree 5.281, of November 23, 2004 |
| Accelerated depreciation for machines and equipment | Enables accelerated depreciation on capital goods purchased between October 1, 2004 and December 31, 2006, to be deducted from the Charge on Net Profit (CSLL), reducing the depreciation period of such goods from 10 to 4 years. For companies that operate 3 shifts, the period is 2 years. Thus the value of machines and equipment can be deducted from Income Tax in less than half the time. | Law 11.051, of December 29, 2004 – institutes this rule Law 11.196, of November 22, 2005 – extends the period to December 2006 | |
| Early restitution of IR and PIS/COFINS | PIS and COFINS charges paid on the purchase of machines and equipment are credited each month, over a period of 2 years. Previously, they had been restored to companies that purchased such goods, in the form of tax credits, to be settled in 48 months. | Law 11.051, of December 29, .2004 – institutes this rule Law 11.196, of November 22, 2005 – extends this measure for an indefinite period | |
| Special rules for purchases of Capital goods for Exporting Companies (RECAP) | This measure allows companies that make purchases of local or imported capital goods (new machines, instruments and equipment) to suspend payment of PIS and COFINS charges | Companies that export 80% or more of their annual sales by value, and shipyards. | Law 11.196, of November 21, 2005 Decree 5.649, of December 22, 2005 SRF Instruction 605, of January 4, 2006 |
| Special rules for Taxation of Technology Services Export Platforms (REPES) | Waives PIS/PASEP and COFINS charges for purchases of local or imported goods or services, to be incorporated into the fixed assets of eligible companies. | Law 11.196, of November 21, 2005 Decree 5.712, of March 2, 2006 Implemented by SRF Instruction 630, of March 15, 2006 | |
| Incentives for Technological Innovation | fiscal incentives, e.g.: Income Tax and Charge on Net Profits (CSLL) rebates on R&D expenditures;
| Corporate entities that carry out technological research and development for technological innovation. | Law 11.196, of November 21, 2005 (Chapter III - articles 17 to 26) No enabling decree has been issued |
| Innovation Law | Organized with three approaches: fostering of a favorable environment for strategic partnerships between universities, technology institutes and companies; stimulus for participation of scientific and technological institutes in the innovation process; and stimulus for innovation within companies. | Companies that invest in technological innovation, especially micro and small companies. | Law 10.973, of December 2, 2004. Decree 5.563, of October 11, 2005 |
| Bio-security Law | Establishes safety standards and inspection mechanisms for handling of genetically modified organisms (GMOs) and their derivatives, creates the National Bio-Security Council (CNBS), restructures the National Bio-Security Committee (CTNBio), and provides for a National Bio-security Council (PNB) | Law 11.105, of March 24, 2005. Decree 5.591, OF NOVEMBER 22, 2005 | |
| Informatics Law | Enables IPI rebates for IT Goods, produced under the Basic Production Process, described in legislation (minimum set of operations at the manufacturing plant, characterizing effective manufacture of the product) | Makers of computers, automation and telecommunications equipment, microelectronics, software and technical services. | Law 11.077, of December 30, 2004 (Alters Law 8.248, of October 23, 1991, Law 8.387, of December 30, 1991, and Law 10.176, of January 11, 2001) Decree 4.401, of October 1, 2002. |
| Sectoral Funds Cross-Cutting Actions of Sectoral Funds are strategic progrtams of the Ministry of Science and Technology (MCT) that orient the Federal Government’s Industrial, Technological and Foreign Trade Policies (PITCE) simultaneously using resources from a variety of Sectoral Funds. | With resources from the National Science and Technology Development Fund (FNDCT) (except Funttel), these instruments support research projects, development, and innovation in CT - Aeronáutico CT - Agronegócios CT - Amazônia CT - Aquaviários CT - Biotecnologia CT - Energ CT - Espacial CT - Hidro CT - Info CT - Infra CT - Mineral CT - Petro CT - Saúde CT - Transportes CT - Verde Amarelo Funttel | Governmental and private companies may participate in the technical and financial execution of projects supported by Sectoral Funds (in partnership with universities or research centers) | FNDCT - DECREE-LAW 719, OF JULY 31, 1969 CT-PETRO – Law 9.478, of August 6, 1997 CT-ENERG – Law 9991, of July 24, 2000 CT-HIDRO – Law 9993, of July 24, 2000 CT-TRANSPORTES – Law 9992, of July 24, 2000 CT-MINERAL – – Law 9993, of July 24, 2000 CT-ESPACIAL – – Law 9994, of July 24, 2000 FUNTTEL – Law 10052, of November 24, 2000 CT-INFO – Law 10176, of November 24, 2000 CT Verde Amarelo – Law 10.168, of December 29, 2000. and Law 10.332, of December 19, 2001. CT-INFRA — Law 10197 CT Agronegócios – Law 10.332, of December 19, 2001 and Decree 4.157, of March 12, 2002. CT Biotecnologia; Law 10.332, of December 19, 2001 and Decree 4.154, of March 7, 2002 CT Saúde Law 10.332, of December 19, 2001 and Decree 4.157, of March 12, 2002. CT Aeronáutico - Law 10.332, of December 19, 2001 and Decree 4.179, of April 2, 2002 |
| BNDES Lines of Credit | Funding Program for National Suppliers of Equipment, Materials and Associated Services | Brazilian companies, with head offices and management in | |
| Support Program for Development of a Productive Chain for the Pharmaceutical Industry (PROFARMA) Support may be provided by means of activities related to the production of medical drugs (PROFARMA-Produção), for Research and Development (PROFARMA-P, D & I) and Strengthening of Companies under National Control (PROFARMA-Fortalecimento das Empresas Nacionais) | Pharmaceutical companies, including intermediary chemicals and plant extracts, pharmochemicals and drugs for human use, and other related products for human health. | ||
| Fund for Technological Development of Telecommunications - FUNTTEL Aims to stimulate technological innovation, capacity building for human resources, create jobs, and promote access for small and medium-size companies to capital resources, with a view to expanding competitiveness of the Brazilian telecommunications industry | Operations in the form of refundable loans and venture capital: Brazilian companies with head offices in Support with non-refundable resources: cooperation projects between universities, research centers, and companies. | ||
| Program for Development of the National Software Industry and Related Services - PROSOFT Aims to develop the National Software Industry and related Services | PROSOFT - Empresa - Brazilian companies, with head offices and management in PROSOFT - Exportação - Brazilian private companies, with head offices and management in PÓS-EMBARQUE - Brazilian private companies , with head offices and management in | ||
| Modernization Program for National Industry - MODERMAQ New Machines and equipment produced in | Companies of any size registered by the National Classification of Economic Activities (CNAE) as an extractive industry (Section C), manufacturing (Section D) or construction industry | ||
| Technological Fund - FUNTEC aims to provide financial support for projects to stimulate technological development and innovation in the National interest. | Technological Institutions (IT) and Support Institutions (IA), for the development of research projects, technological development and innovation, with participation of companies. |