Incentives for companies – including small and medium-sized ones – to export to other countries are growing and can help in the internationalization process
Brazil is an extremely rich country and full of diversities that are very attractive to the foreign market. In addition to having a very favorable climate and soil condition for different plantings. Exporting a product, however, is not an easy and inexpensive process. Therefore, it is necessary to know the export benefits , all steps towards successful internationalization and government incentives not to make mistakes in the process.
There are several incentives offered, the main one being the non-imposition of taxes on exports. This means that exports are tax-free such as ICMS, IPI, PIS, COFINS and, if the producer needs to purchase inputs at this tax cost, the industry generates tax credit in return.
State governments also provide advantages such as exemption from ICMS and FUNDAP for those who export their products.
The reduction of the tax burden means that the “Made in Brazil” products reach the foreign market at a more competitive price.
Other incentives from the Brazilian government
Tax exemptions help entrepreneurs a lot in the internationalization process, but they are not the only incentives of the Brazilian government to export products.
Federal and state governments also offer several export promotion agents. One of them is the Brazilian Export and Investment Promotion Agency (APEX).
The Agency seeks to insert companies of all sizes in the international market, with a strong focus on small and medium-sized companies. In addition to encouraging exports, APEX also helps entrepreneurs interested in entering the Brazilian market.
On the internet, the Exporter Portal also offers didactic information on legislation, mechanisms, terms and rules of the export process. Administered by the Ministry of Development, Industry and Foreign Trade, the space also teaches export step by step.
Main incentives for exporters
export of industrialized products is immune to ICMS. Transactions are not taxable as long as they are products:
- industrialized, due to immunity;
- semi-elaborated, due to non-incidence; and
- primary, due to non-incidence.
The exporter can still receive the ICMS credit paid on the purchase of inputs intended for industrialization or goods purchased for resale, as well as electricity (in proportion to exports over total outputs or installments or entirely when consumed in the industrialization process) and services communication (in proportion to exports over total outputs or installments).
Industrialized products destined for the exterior are exempt from the levy of the tax, covering all products, of national or foreign origin. In addition, the exporter may also receive the IPI credit paid on the purchase of the inputs it has industrialized.
ISS does not apply to service exports abroad.
PIS AND COFINS
Exports are exempt from PIS and Social Security Financing Contribution (COFINS). The exporter may also receive presumed IPI credit when producing and exporting goods that use national inputs and have been subject to PIS and COFINS.
The special customs regime of Drawback is an instrument to stimulate exports. It allows the suspension or elimination of taxes on imported inputs for use in exported products.
It is granted to industrial or commercial companies, granting exemption or suspension from the Import Tax, IPI, ICMS, Additional Freight for Renewal of the Merchant Navy (AFRMM), in addition to the waiver of the collection of fees that do not correspond to the effective consideration of services.
Foreign exchange remittances abroad are deductible from Income Tax, exclusively for the payment of expenses related to market research for Brazilian export products, as well as those arising from participation in events.
Expenses with rentals and leases of stands and exhibition sites linked to the promotion of Brazilian products, as well as advertisements carried out within the scope of these events, also have this benefit.