Extension and expansion of incentive regime for semiconductor industry
11 Sep 2024
On 11 September 2024, the Government of Brazil adopted legislation that will come into force on 1 January 2025, extending existing financial incentives for the semiconductor industry and introducing new ones. The law:
- Extends the incentives specified in Laws No. 8,248 of 23 October 1991, 11,484 of 31 May 2007, and 13,969 of 26 December 2019 until 31 December 2029;
- Establishes the Brazil Semiconductor Programme (Brasil Semicon), which is mandated to support the development of the semiconductor, display, and solar panel industries;
- Reduces the Financial Transaction Tax (IOF) to zero on credit lines and guarantees for financing direct capital and operating costs, as provided by the National Bank for Economic and Social Development (BNDES) and the Study and Project Financing Agency (Finep);
- Simplifies financial credit calculations for research and development (R&D) investments for beneficiaries of the Support Programme for the Technological Development of the Semiconductor Industry (Padis), calculated as 2.62 times the expenditure on research, development, and innovation activities, up to 13.10 per cent of the minimum investment value in R&D;
- Expands the scope of qualifying activities under Padis;
- Authorises BNDES and Finep to make equity investments and subscribe to investment funds in semiconductor enterprises.
-
Type:
-
Promotion and facilitation (Investment incentives)
-
Industry:
-
Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment)
-
Sources:
-
Official Gazette of the Union, LAW Nº 14.968, OF SEPTEMBER 11, 2024, https://www.in.gov.br/en/web/dou/-/lei-n-14.968-de-11-de-setembro-de-2024-584014273, 12 Oct 2024
-
Gov.br, Chips, cloud and robotics: Brazil commits BRL 186.6 billion to drive industrial digitalization, https://www.gov.br/planalto/en/latest-news/2024/09/chips-cloud-and-robotics-brazil-commits-brl-186-6-billion-to-drive-industrial-digitalization#:~:text=%C2%BB%20The%20president%20has%20approved%20the,e%20Comunica%C3%A7%C3%B5es%2FTIC)%20sectors., 11 Oct 2024
