Brazil Equipment and Machinery
The Brazilian Federal Government has unveiled a fresh initiative aimed at supporting the modernization of manufacturing by expediting deductions on capital assets
A recent survey by the National Confederation of Industries found that machinery and equipment in Brazilian manufacturing plants are on average fourteen years in use, with about 40% exceeding the recommended product lifespan set by manufacturers. These findings highlight an urgent need for public policies to encourage industrial renewal and enhance competitiveness.
To address this issue, the federal government has recently unveiled a program aimed at revitalizing Brazilian industries. This initiative will employ “accelerated depreciation” as a policy tool, enabling manufacturers to expedite deductions on capital goods assets in their Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL) filings. The program, jointly announced by the Ministries of Development, Industry, Commerce, and Services (MDIC) and Ministry of Finance (MF), is set to roll out in 2024. U.S. exporters of industrial machinery and equipment can benefit from the program due to the anticipated rise in capital goods investments for the upgrade of Brazilian plants with new manufacturing technologies.
For more details and updates on the features and timeline of the new program, please reach out to CS Brazil at email@example.com.