New tax benefits for the Brazilian solar industry
On March 30, 2023, the Brazilian Federal Government published Decree 11,456/2023 to include the segment of solar panels in the Support Program for the Technological Development of the Semiconductor Industry (PADIS).
Brazilian companies enrolled in the PADIS are able to import and purchase (locally) inputs, parts and equipment with exemption of the following federal taxes (as applicable): (i) Social Contribution on Gross Revenue (PIS/COFINS); (ii) Social Contribution on Imports (PIS/COFINS-Imports); (iii) Excise Tax (IPI); and (iv) Import Tax (II).
To be enrolled in the PADIS, a Brazilian company must be qualified by the Brazilian Revenue Office and invest at least 5% of its local sales revenue in the Research and Development (R&D) of the benefited industries. Initially, PADIS was focused on the Brazilian semiconductor industry, but, with Decree 11,456/2023, the benefit was extended to inputs, parts, and equipment used in the manufacturing of solar panels. Among the items included, there are copper plates and strips, tempered glass, electrical conductors, and junction boxes for photovoltaic modules, among others.
Solar panels are used to capture sunlight to generate electricity, constituting one of the main renewable sources to produce clean energy. The intention of the benefit is to foster the local industry of solar panels in Brazil and incentivize green energy consumption. The benefits provided by Decree 11,456/2023 are effective until December 31, 2026, if not renewed.
Main contacts:
Alex Jorge
Partner, Co-Head of Tax and Co-leader of Latin America Practice Group at DLA Piper
alex.jorge@cmalaw.com
Humberto Marini
Partner and Co-head
humberto.marini@cmalaw.com
Flavia Ganzella
Partner
flavia.ganzella@cmalaw.com
Leonardo Rzezinski
Partner
leonardo@cmalaw.com
Comentários