Brazil provide tax benefits to foreign investment, such as, tax exemption and facilities for obtaining investor visas, when embedded in rules established by the government. Some of the best known for the technology sector are listed:
Values to consider: IPI (2% to 15%), PIS (0.65%) and COFINS (3%).
1. PADIS - Support Program for the Technological Development of the Semiconductor Industry
Program for companies in the semiconductor, display and LED sectors. Benefits: Exemption of income tax and taxes: IPI , PIS and COFINS in the acquisition of raw material, inputs and software that are sent directly in production activities and research. Note: Effective until January 22, 2022. PADIS is regulated by Law No. 11,484 / 2017, the acceptance criteria are defined in Decree No. 6.233 / 2017 and regulatory instruction RFB nº 852/2008
2. PATVD - Support Program for the Development of the Digital TV Equipment Industry
Program for digital TV equipment industry. Benefits: Exemption of PIS, COFINS and IPI in the acquisition of raw material, new instruments and equipment, softwares and others, available for production and research activities. The PATVD is regulated by Law No. 11,484 / 2017, the acceptance criteria are defined as Decree No. 6.634 / 2017 and Normative Instruction RFB No. 853/2008
3. REPES - Special taxation regime for the export platform of information technology services
Program for companies specialized in software development or information technology services. Benefits: Exemption of PIS and COFINS in the acquisition of IT products and services. It is also possible to import products exempt from IPI, as long as there is no product of national manufacture. As companies that qualify for the scheme must commit to export more than 80% of their annual gross revenue related to the sale of products and services. REPES is regulated by Law 11,196 / 2005, the acceptance criteria are defined not Decree No. 5,712 / 2006 and normative instruction SRF nº 630/1996
4. Incentive of 30% for technology research visas
To concede investor visa in Brazil, the value is 500,000 BRL (160,000 USD), but in cases where the investment is destined for innovation activities, basic or applied research, scientific or technological, this value is 150,000 BRL (50,000 USD). In order to obtain the benefit, the company must follow the requirements set forth in Normative Resolution No. 118 of October 21, 2015.
- Soft landing: There is also the possibility of exchanging companies in technology parks, through a program called soft landing. The purpose of this program is to shelter and provide temporary support to visiting companies. They can participate in the type of program as incubated companies, like startups, that are in some of the technological parks of the program.
- São Paulo Inova: Support for companies in the state of são paulo, technologically based and innovative in the initial stage or in the process of opening. The program provides special lines of credit for companies with revenues of up to 300 million BRL (96 million USD) with technological projects and investment funds aimed at companies and innovative companies with revenues of 3.6 million BRL (1.15 million USD) to 18 million BRL (5.8 million USD).
- There are other incentives for the technological sector in Brazil, and some of them are still in the process of approval, for example, a proposal to deduct expenses in technological research and innovation development in the calculation of net income. If approved, the incentive is a deduction of 20% of the total spent on technology research conducted year by year by the company.
The base text was approved in the Chamber of Deputies on July 10, 2017.