Government removes import tax for semiconductor industry equipment

- Tuesday, November 8, 2011

Government removes import tax for semiconductor industry equipment

Brazil's government has taken away the tax on equipment imported by companies benefiting from the national semiconductors industry development support program (PADIS), federal gazette Diário Oficial da União reported.

PADIS already offered exemptions from the PIS and Cofins welfare taxes and the industrialized products IPI tax. The import tax was variable, depending on the type of equipment and its origin.

The government also extended the tax breaks to a broader range of imported equipment, now including "machines, devices, instruments, equipment, materials and computational tools." The decree provides a detailed list of all the products affected.

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The companies looking to utilize PADIS can present detailed R&D projects until January 2015. The projects will be analyzed by the ministries of science, technology and innovation, and of development, industry and trade.

Use this link to see the full decree, in Portuguese.