Lei do Bem (Tax Incentives for R&D): Who Qualifies and What You Get
Learn how Brazilian companies can reduce their corporate income tax by investing in research and development through this incentive program.
This program provides tax breaks to companies that invest in research, development, and technological innovation.
Who it's for
This incentive is available to companies that operate under the specific "Lucro Real" tax regime and are investing in research and development.
What you get
You can receive a deduction from your corporate income tax. This deduction can cover up to 34% of the money spent on your research and development activities.
What it costs you
While there is no direct fee to access the benefit, you must invest significant time and effort into rigorous reporting and maintaining detailed documentation for audits.
The catch to know
The tax benefit is only available if your company is currently profitable. If you are not making a profit, you cannot use this specific deduction to reduce your tax burden.
How to apply
- Ensure your company is registered under the correct tax regime.
- Keep detailed records of all research and development expenses.
- Prepare the required documentation for government review.
- Follow the reporting guidelines provided by the relevant government body.