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Brazil: Guidance on extended tax benefits related to tax on industrialized products

Extension applies to sales made until December 31, 2026

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February 21, 2025

The Federal Revenue Service on November 25, 2024, provided guidance on the extended tax benefits related to the tax on manufactured products (IPI).

The extension applies to companies with research and development (R&D) investments in the north, northeast, and midwest regions, and certain industrial entities within the SUDAM and SUDENE regions.

The extension applies to sales made until December 31, 2026, exclusive to approved projects by the end of 2024 or 2025 that expand or reboot production in plants under operational or inactive projects, provided they meet the qualification criteria.

For more information, contact a KPMG tax professional in Brazil:

Ricardo Roa | RRoa@kpmg.com.br

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