Brazil unveils tax incentives to boost tech innovation

Sep 18, 2012

President Dilma Rousseff has approved new tax incentives to boost innovation in the information technology and telecommunications sectors, the official agencia Brasil reported Tuesday.

The measures, published in the Official Gazette, are part of the government's Brasil Maior ("Bigger Brazil") plan unveiled in August 2011 to strengthen the productivity and competitiveness of Brazilian industries.

The plan provides incentives, financing and tax relief for domestic sectors, including information and communication technology, affected by the appreciation of its currency and international competition.

Brasil Maior notably cuts corporate payroll contributions to Social Security from 20 percent to zero through December 2012 for companies in labor-intensive sectors.

The firms are instead required to pay a of 1.5 percent or higher on gross revenues, with the rate varying by sector.

is currently the world's fifth largest market for information technology and communications (ITC), and hopes to vault into third place by 2022.

In August, the science and technology ministry announced a $250 million program to bolster the software and sectors.

The funds are to be invested until 2015 in areas such as economic and social development, innovation and competitiveness through support for youth training, state purchases from companies developing software domestically and links with world research centers.

On Monday, for a seventh consecutive time cut this year's growth forecast for the Brazilian economy, which now is at 1.57 percent.

Last week, the government revised downward its own projection for 2012 from three to two percent.

Explore further: Struggling BlackBerry announces new round of layoffs

Related Stories

Brazil bids to become world's third IT market by 2022

Aug 28, 2012

Brazil hopes to capitalize on the 2014 World Cup and the 2016 Summer Olympics to advance its goal of becoming the world's third largest information technology and communications (ITC) market, a top industry ...

Hackers attack large Brazilian bank

Jan 31, 2012

(AP) -- A group of Internet hackers said Tuesday it took down the website of Brazil's second largest private sector bank, one day after it did the same with the country's largest private bank.

Hackers attack Brazil's largest state-run bank

Feb 01, 2012

(AP) -- A group of Internet hackers said Wednesday it took down the website of the Banco do Brasil, Brazil's largest state-run bank. It's the third such attack against financial institutions in a week.

Brazil's Belo Monte dam better than alternatives: study

Dec 12, 2011

Brazil's Belo Monte hydroelectric dam in the heart of the Amazon will have fewer environmental effects than fossil-fuel alternatives and will be cheaper than other renewable energy sources, state media said ...

Recommended for you

Yik Yak's frat-bro founders shrug off growing pains

1 hour ago

The most popular post of all time on Yik Yak is a dirty joke. Less than 2 years old, the Atlanta-based social network is geared mostly toward college students who access and post unsigned announcements through an app on their ...

Uber drivers fined in Hungary

May 24, 2015

The Hungarian tax authority fined Uber drivers in its first probe against the ride-sharing service which the economy ministry said Saturday "ignores passenger safety" and must be made to follow regulations.

Domino's taking orders via tweet

May 22, 2015

Domino's on Wednesday launched perhaps the easiest way to satisfy a pizza craving this side of mind reading: order by tweet.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.