Brazil
Brazil’s main R&D Tax Incentive, Lei do Bem offers a minimum 160% superdeduction on R&D
expenses. In addition, accelerated depreciation of R&D assets, tax credit on IT Law, incentives for
R&D machinery / equipment acquisition result, IP, Automotive industry.
| Brazil Minimum R&D Superdeduction |
Brazil Increasing contracted researchers |
|
|---|---|---|
| 160% R&D superdeduction | Up to 200% R&D superdeduction Increasing up to / more than 5% → +10% / +20% IPI in Brazil → +20% |
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| Benefit Overview
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With a minimum of 15% taxation, the scheme allows 9% benefit, and can increase beyong 25%, resulting in benefit exceeding 15% of qualifying expenses. |
In case of a 25% taxation, the benefit increases from 15% to 25% |
| Eligible Claim Period
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The R&D expenses are those engaged over calendar year (1st Jan → 31st Dec) and are computed with the taxable income by end of July of the following year. | |
| Historical Background
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Introduced in 2005, the Brazilian scheme has evolved to its current shape by surrounding the R&D superdeduction Lei do Bem with complementary incentives. The minimum 9% generosity is easily achieved, with a wide range of additional schemes. | |
| Ease of Application
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Claim is based on a self-assessment; no upfront approval is requested. Claiming company is requested to present the tax clearance certificate for concerned fiscal year. | |
| Regulating Body Policies
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Both Ministry of Economy and Ministry of Science, Technology and Innovation (MCTI) are supervising the schemes. | |
| Eligible Costs
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| Issues to Consider
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The scheme is non-refundable, cannot be carried-forward/back and is not available for presumed profit taxation. | |