Fiscal Incentives in EPZs
• On Imports
– Suspension of all federal taxes to purchase inputs (factors of production) and capital goods;
– Reduction (92%) in the main state tax (ICMS) to import capital goods, inputs (factors of production), secondary and package material;
– The right to have previously paid taxes to purchase capital goods refunded, as well as previously paid taxes on electricity consumption, and on operations which have made the entrance of goods in the company happen, for integration or consumption during the manufacturing process of goods, including unfinished goods, directed to other countries.
• On Exports
– No ICMS (VAT) payment on operations that send goods abroad, including primary goods, and unfinished manufacturing goods and services.
• Income tax
– Reduction (75%) in the income tax for a period of ten years for the companies set in EPZ-Ilhéus (benefit for being located in the Northeast of Brazil).
• Possibility of keeping abroad 100% of proceeds from exportations (use only for: investment, financial application or payment of export operation obligations. Not allowed for any kind of loans).