Provisional Measure provides tax incentives for carmakers from 2011
The Executive branch has sent to Congress a Provisional Measure (MP) 471/09, which grants tax incentives for carmakers and vehicle manufacturers in the North, Northeast and Midwest regions. From January 2011 to December 2015, they can claim assumed credits from the Tax on Industrialised Products (IPI) in the form of a refund of social security contributions (PIS and Cofins).
The benefit is conditional on investment – representing at least 10% of the assumed credit established – in research, development and technological innovation in the region, including automotive engineering.
The company will lose the benefit if it is unable to demonstrate to the Ministry of Science and Technology the fulfilment of the proposed investment. The MP amends Laws 9440/97 and 9826/99, which provide tax incentives for regional development.
Procedure
The Provisional Measure is to lock the agenda of the House – the Chamber or the Senate – where it is being processed as of February 17, 2010.
Report - Luiz Claudio Pinheiro
Edition - Newton Araújo / RX
Translation – Rejane Xavier