New tax rebate for the car industry
03 Oct 2012
The Brazilian Government has issued a Decree (7819/12) that regulates the implementation of the Inovar Auto programme, which seeks to promote innovation in the automotive sector through research and development. It focuses on environmentally sound technologies, with incentives such as a tax rebate over the tax on industrial products. The programme will start in January 2013 and will expire on 31 December 2017. Eligible producers will need to apply for permits to the Ministry of Industry, Development and External Trade to obtain tax exemptions and other incentives. Permits are valid for 12 months and renewable. Tax credits will be conceded based on companies' spending in research and development as well as technology and knowledge transfer to suppliers.
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Type:
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Promotion and facilitation (Investment incentives)
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Industry:
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Manufacturing (Manufacture of computer, electronic and optical products, and electrical equipment)
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Sources:
