Brazilian companies that produce computer products and invest in research, development and innovation (RD&I) have until March 31, 2017 to take advantage of tax incentives under the Information Technology Act. They should submit requests for review to the Ministry of Science, Technology, Innovation and Communications (MCTIC). The documents have to include information on the products for which the incentive is being requested, details of the research project they intend to conduct, such as compensation, and general information about the company.
Enacted in October 1991, the Information Technology Act lowers the percentage of the Federal Value-Added Tax (IPI) on goods such as hardware and electronic components until 2029. In exchange, companies are required to invest the equivalent of 4% of annual sales revenues from goods that have benefitted from RD&I, minus business taxes. Companies that do not have their own RD&I line can invest the incentive through private institutes that perform made-to-order research. There are 18 such institutes in São Paulo State (see Pesquisa FAPESP Issue nº 248).
There are also partnership opportunities with centers that have agreements with the Brazilian Corporation for Industrial Research and Innovation (Embrapii) such as the Recife Center for Advanced Studies and Systems (CESAR) in Pernambuco State, and the Centers of Reference in Innovation Technologies (CERTI) in Santa Catarina State. For more information: bit.ly/LeInfo.
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