By Victor Sampaio, Tax Manager at MCS Markup
The Lei do Bem, established by Law No. 11.196/2005, presents significant potential for reducing Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) expenses. As a general rule, for every BRL 100,000.00 invested, the company recovers BRL 20,400.00 through reductions in IRPJ and CSLL.
The submission deadline for information relating to the 2024 calendar year has recently been extended to September 30, 2025, giving companies more time to identify projects and processes that fall within the scope of the Lei do Bem.
With the objective of encouraging Brazilian companies to invest in Research, Development and Innovation (RD&I), the Lei do Bem has been promoting innovation and the competitiveness of Brazilian companies, both in the domestic and international markets, stimulating the development of the private productive sector and reducing companies’ tax burden.
The concept of technological innovation under the Lei do Bem is defined as “the conception of a new product or manufacturing process, as well as the addition of new functionalities or characteristics to a product or process that entails incremental improvements and an effective gain in quality or productivity, resulting in greater market competitiveness” (Article 17, Paragraph 1).
The innovation referred to may occur in two ways: either through the conception of a new product or process directly linked to goods and services, where the development may be new to the company or to the market, or through a significant improvement that adds relevant functionality or performance to an existing product, process or service, generating real gains in quality or productivity.
In other words, companies that invest in the development of new products, services or improvements to existing products, such as software and application development, production process improvements, automation, prototypes, waste reduction, machinery adaptation, development of new equipment and sustainability initiatives, may map their activities and their stages and include them in the declaration to be submitted to the MCTI (Ministry of Science, Technology and Innovation).
The benefit applies to all sectors, with no restrictions, provided it can be demonstrated that a technical and scientific effort was involved in the development, that the project involved technological uncertainty and that the process followed a methodology, including tests, validations and prototypes.
The Lei do Bem offers a range of tax benefits, including:
an additional exclusion of 60% to 80% in the calculation of IRPJ/CSLL on expenditures/expenses relating to R&D activities, full depreciation of machinery and equipment used for Research and Development (financial benefit), and a 50% reduction in IPI levied on the acquisition of machinery and equipment used for R&D.
These benefits provide tax relief, allowing the resources saved to be reinvested in new research or in other areas essential to business growth.
Another point worth highlighting is that the use of the Lei do Bem contributes to the company’s strategic market positioning, as innovation is increasingly associated with the image of brands that seek not only financial results, but also the development of more sustainable and technological solutions.
How can MCS Markup help your company?
The process of adhering to the Lei do Bem involves several stages and requires specific technical knowledge to ensure that all requirements are correctly met. In this context, MCS Markup offers comprehensive support, from the identification of eligible innovation projects through to the submission of the declaration.
Project Identification: the first step is to carry out a detailed survey of the RD&I projects developed by the company. MCS Markup assists in the analysis and identification of activities that meet the criteria of the Lei do Bem, ensuring that the projects are aligned with the legal requirements.
Preparation of the Technical Description: after the identification of eligible projects, a detailed technical description must be prepared, demonstrating the innovation and the research objectives of each project. Our team can assist in drafting this description in a clear and technical manner, meeting all requirements established by the legislation.
Completion of the Platform and Submission of the Declaration: MCS Markup also provides support in the use of the online platform of the Ministry of Science, Technology and Innovation (MCTI) for the completion of the declaration and the submission of projects. We ensure that all data is entered correctly, avoiding errors that could compromise the subsequent approval of the projects.
Post-Submission Follow-Up: our advisory service does not end with the submission of the declaration. After filing, our team monitors the entire process, providing support for any adjustments or supplementations requested by the government, until the process is concluded.
Do not miss the opportunity to invest in innovation and drive the growth of your company with the support of MCS Markup. Contact us and find out how we can help your company benefit from this important tax incentive.
