Companies that utilize the benefits of ‘Lei do Bem’ (Law No. 11,196/2005) are required to submit data annually on the research activities developed in the previous year (2022). The deadline is July 31, 2023.
The Law No. 11,196/2005 aims to stimulate technological research activities by Brazilian companies. To this purpose, tax incentives are offered related to amounts directed to innovation and increased technical-productive capacity. The aim is to encourage companies to invest in the riskiest phase of research development, the uncertainty of the outcome, to ensure the effective development of new processes and technologies.
These benefits do not depend on prior approval, and it is sufficient for the company to render accounts after the research and development activities are preformed, in any of the modalities allowed by the law (basic directed research, applied research or experimental development).
The incentives of the Law are applicable to companies subject to the Actual Profit and consist essentially of:
- Deduction of amounts spent on RD&I activities, in the following percentages:
i) up to 60%, via exclusion;
ii) up to an additional 10%, when hiring researchers for RD&I (increase of less than 5%);
iii) up to an additional 20%, when hiring researchers for RD&I (increase of more than 5%);
iv) up to an additional 20%, in cases of granted patent or ‘cultivar’ registration;
- Reduction of 50% of the IPI on the acquisition of goods intended for RD&I;
- Full Accelerated Depreciation of new goods intended for RD&I;
- Accelerated Amortization of intangible assets intended for RD&I; and
- Reduction to zero of the Withholding Income Tax (IRRF) rate on remittances of financial resources abroad for the registration and maintenance of trademarks, patents and ‘cultivares’.