Special
tax zones in Brazil
The Brazilian federal and
state governments offer some tax benefits to promote the incorporation of new
companies in areas that need economic enhancement.
Below, the reader will find
a list the most important tax programs that can be chosen when establishing a
business in Brazil.
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Manaus Free Zone (mostly in Amazonas State)
·
Import tax reduction, provided the product has
one of its industrial stages in Manaus Free Zone – MFZ (art. 7º, Decree-Law
n. 288)
·
Exemption of
PIS/ COFINS import tax if the products imported is going to be industrialized
in Manaus Free Zone (art. 5º, Act n. 10.996);
·
Exemption of IPI tax (art. 9º, Decree-Law n.
288);
·
A reduced rate of 3% COFINS and 0.65% PIS over the company’s gross revenue if the
products are destined to a company also in MFZ (arts. 3º and 4º, Act n.
10.996);
·
A reduced rate of 6% COFINS and 1,3% PIS over the
company’s gross revenue if the products are destined to a company outside the
MFZ(arts. 3º and 4º, Act n. 10.996);
·
A reduced rate of state vat – ICMS- of 12% for
products imported to the MFZ (art. 1º, Act n. 2369);
·
Exemption of the Freight Surcharge for the
Renovation of the Navy Merchant (AFRMM) exceptionally, until December 31,
2015 (art. 4º Act n. 9.808).
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Santa
Catarina State
·
ICMS (state vat) deferment on goods to be sold within
the state intended for the construction of projects that falls within the
rules of the “Pro-employment program”;
·
ICMS deferment to the next stage of sales
process, if the products are destined to distribution centers in South and
Southeast regions (art. 12, Act n. 13.992);
·
Extension of deadline for payment of the ICMS, up
to 24 months, if the company sell its products to distribution centers in the
South and Southeast regions (art. 12, Act n. 13.992).
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Espírito
Santo State
Espírito
Santo State offers a range of tax incentives that are not expressly
authorized by the CONFAZ, a Brazilian organ that regulates fiscal policy. Due
mainly to the “fiscal war”, Brazilian Courts are discussing if benefits not
authorized by the CONFAZ shall be considered unconstitutional. Therefore, all
the benefits offered by the Espírito Santo State should be considered as
risky until the final decision is rendered.
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Minas
Gerais State
Granting
of specific benefits, on case by case basis. These benefits normally refer to
ICMS exemptions.
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Rio de Janeiro State
·
ICMS deferment in the import
of machinery intended to compose the
fixed assets and in the import of inputs for industrialization (Decree n.
36.451)
·
ICMS presumed credit that
results on the internal tax rate of 7% and in the in interstate
rate of 12%.(Decree n. 36.451)
·
RIOINVEST: Funding for
structuring investments. Program to attract investment to encourage
large-scale projects on the State of Rio de Janeiro. (Decree n. 23.012/97)
·
RIOINDÚSTRIA: Financing
of industrial projects and non-structuring that do not fit in Sector Programs
and Regional. (Decree n. 24.937/98)
·
RIOPORTOS: Deferred
payment of ICMS on imports of goods, beyond funding under the Fundes. (Act n.
4.184/03).
·
Reduces the ICMS on
imports for 15% and in the case of the goods come through the Tom Jobim
International Airport, to 13%. (Act n. 3.383/04)
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Sudene/Adene
area (Mostly in the Northeast states)
·
Reduction of corporate income tax in 75% for a
period of 10 years; (art. 1º, Decree nº 6.539/08).
·
priority sector companies may apply 30% of the income
tax due on reinvestment projects, (art. 115, Normative Instruction SRF nº
267);
·
Accelerated depreciation for purposes of
computing the income tax (art. 31, I, Act n. 11196);
·
the credits of PIS and COFINS can be used until
12 months after the acquisition of new equipment (art. 31, II, Act n. 11196);
·
Exemption of the Freight Surcharge for the
Renovation of the Navy Merchant (AFRMM) exceptionally, until December 31,
2015 (art. 4º Act n. 9.808).
(Benefits,
except for the first one, are valid only until 2018)
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