Chamber extends tax incentives for companies in the Northeast and Amazon until 2028

The Chamber of Deputies approved this Wednesday (22) the project that extends tax incentives for companies located in the areas of operation of the Northeast Development Superintendence (Sudene) and the Amazon Development Superintendence (Sudam) from 2023 until 2028. Bill 4416/21, by deputy Júlio Cesar (PSD-PI), will be sent for presidential approval.

The deputies rejected the Senate amendment that extended the benefit to companies located in the Central-West, the area covered by the Central-West Development Superintendency (Sudeco). The rapporteur of the matter, deputy Eduardo Bismarck (PDT-CE), expressed his rejection of the senators’ amendment. “There is, as in the case of Sudam and Sudene, no budget forecast for Sudeco, hence the unconstitutionality of this amendment,” he stated.

This benefit for companies in the Sudam and Sudene areas has existed since 2000 and its first version ended in 2013, when it was extended until 2018 and then until 2023, informed the Chamber Agency. Thus, companies from the states served by these superintendences will have until December 31, 2028 to present and have approved a project for installation, expansion, modernization or diversification in sectors of the economy considered priorities for regional development, according to a decree from the Executive Branch.

The incentive corresponds to a 75% reduction in income tax and additional taxes calculated based on the profit from operating the business. The Federal Revenue estimates that this incentive will result in relief, in 2023, of around R$6.0 billion in Sudam and R$8.5 billion in Sudene. According to the text, the government must, after the law is sanctioned, include the waiver in the annual budget law.