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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.

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Brazil Minimum R&D

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%
Benefit Overview

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

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

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

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

Both Ministry of Economy and Ministry of Science, Technology and Innovation (MCTI) are supervising the schemes.
Eligible Costs

  • Salaries
  • Materials
  • Machines
  • Equipment
  • Instrument
  • Intangibles
  • Limitative R&D subcontracting
Issues to Consider

The scheme is non-refundable, cannot be carried-forward/back and is not available for presumed profit taxation.