Adopts a new Tax Benefits Code
14 Apr 2022
The Tax Benefits Code (Law No. 8/22 of April 14 2022, effective on 14 May 2022) has been enacted. It provides that tax benefits can be granted with a maximum duration of 10 years to investments under either the prior declaration or special regime, such as (i) reductions in Property Tax rates for the acquisition of properties intended for the office and for the establishment of the investment, variable according to the respective location in the country´s development zones, namely Zones A, Zone B, Zone C and Zone D; (ii) reduction of Industrial Tax rates, the Capital Investment Tax levied on the distribution of profits and dividends and the Stamp Duty.
Further, the Code contemplates tax benefits applicable to investment projects included in the contractual regime and to public-private partnerships such as (i) reduction of Industrial Tax, Urban Property Tax, Capital Investment Tax and Stamp Duty, for a period of up to 15 years; (ii) tax credit of up to 50% of the investment value, for a period of up to 10 years; (iii) increase in depreciation and reintegration rates of up to 80%, for a maximum period of 10 years, for projects located in development zones B, C and D;
Finally, as of 14 May 2022, tax benefits may also be granted: to companies that carry out investment operations in the Free Trade Zones, with a duration coinciding with that of the respective zones.
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Type:
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Promotion and facilitation (Investment incentives)
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