Suspends tax incentives regime for high tech sector

21 Jan 2020

On 20 January 2020, the government announced the suspension of the incentives scheme under Law Nº 27.506. The regime was aimed to promote investments requiring significant R&D and technological know-how.

The regime offered a reduced income tax rate of 15%, exemption from value-added tax, deduction of a fixed amount of employer contributions, and a tax credit for the payment of income tax and value-added tax.

The following areas of economic activity were promoted by the "Regime for the Promotion of the Knowledge Economy" under Law Nº27.506: computer and digital software and services; audiovisual production and post-production; biotechnology, bio economy, biology, biochemistry, microbiology, bioinformatics, molecular biology, neurotechnology, genetic engineering, geoengineering; geological and prospecting services and services related to electronics and communications; exported professional services; nanotechnology and nanoscience; aerospace and satellite industry, space technologies; engineering for the nuclear industry; manufacturing of automation solutions (artificial intelligence, robotics and industrial internet, internet of things, sensors, additive manufacturing, augmented and virtual reality); and research and development in engineering activities, exact and natural sciences, agricultural sciences and medical sciences.

  • Type:
    • Promotion and facilitation (Investment incentives)
  • Industry:
    • Primary (Agriculture, forestry and fishing)
    • Manufacturing (Printing and reproduction of recorded media, Manufacture of chemicals and chemical products, Manufacture of basic pharmaceutical products and pharmaceutical preparations, Manufacture of computer, electronic and optical products, and electrical equipment, Manufacture of machinery and equipment n.e.c., Manufacture of transport equipment, Other manufacturing)
    • Services (Publishing, audiovisual and broadcasting activities, Telecommunications, Computer programming, consultancy and related activities, Scientific research and development, Other professional, scientific and technical activities, Other service activities)
  • Sources: