State incentives has been saved
Doing Business in Brazil
Statewide, tax incentive programs can reach up to 95 percent reduction on the ICMS (State Value Added Tax - VAT) due. These incentives, managed by the Finance or Economic Development State Departments, are granted differently by each state to investments in industries considered relevant to local economic development.
In addition, the type and level of incentives granted may differ according to the company's activity, number of employees, raw material acquisitions, plant location and its impacts on the state's economy. In some cases, a specific incentive program may be developed for a project or specific activity.
The state incentives can be summarized as:
- Reduction of ICMS due on products sales;
- Deferral of ICMS due on fixed asset and raw material imports;
- Deferral of ICMS due on fixed asset and raw material local acquisitions;
- Grant or subsidized sale of government-owned land for industrial units.