Originally published in the April 23 edition of World Tax Daily (Copyrights Tax Analysts – www.taxanalysts.com )
Brazil’s House of Representatives on April 18 approved Provisional Measure 352/2007, granting a series of tax incentives for digital TV manufacturers in the Digital TV Incentive Program (PATVD) established as part of the economic and tax package (PAC) launched by President Luiz Inácio Lula da Silva on January 22.
Under PATVD, eligible companies may benefit from a zero rate for the federal excise tax (IPI), P.I.S. (Program for Social Integration contribution), COFINS (Contribution for the Financing of Social Security), and royalty tax (CIDE), not only on sales of equipment, but also on purchases of capital goods, technology, and software.
During the review of Provisional Measure 352/07 in the House of Representatives, allied and opposition parties agreed that existing electronics manufacturers should be eligible for PATVD. No other details have been released.
The measure now will be submitted to the Senate.
David Roberto R. Soares da Silva