INDUSTRIAL POLE OF MANAUS
With a population of about 3 million inhabitants distributed in 1.5 million square kilometers, the state of Amazonas concentrates in its capital – Manaus – half of its population. The Manaus Free Tax Zone (MFTZ) is a specific and delimited area within Manaus, being responsible for 99.8% of the state’s economy and, unlike other economic models of the Amazon Region, the MFTZ preserves 98% of the forest reserves in a sustainable model of factories without chimneys. The MFTZ was created in 1967 with the objective of maintaining the territoriality of such a large and undeveloped state, and through Constitutional Amendment 83/2014, the term of enjoyment of the benefits was extended until the year 2073.
STATE OF AMAZONAS - ICMS
This is the only ICMS incentive approved in Brazil from the legal and fiscal point of view, guaranteed by Federal Complementary Law No. 24 of January 7, 1975. This Supplementary Law was also used in a recent decision of STF- Federal Supreme Court, confirming the suspension of the effectiveness of Conventions of other States of the Federation wanted to reduce the current incentives and confirming the maintenance of the benefits granted in the MFTZ. As a result, that’s the only state in the Federation that can grant ICMS incentive, without questioned by the other states.
- 7% Deemed Credit in National Purchases
- Deduction from 55% to 100% of ICMS Balance of Payments
- In certain cases there may be up to 100% reduction of ICMS.
FEDERAL GOVERNMENT - SUFRAMA
- Importation Tax (II): reduction of 88% of the tax rate
- Industrialized Products Tax (IPI): exemption on purchases and sales
- Subsidized land: US$ 0.30 / m² in the Industrial Pole of Manaus
FEDERAL GOVERNMENT – INCOME TAX
- Reduction of 75% of the Income Tax Rate. The ration for collection in the PIM is 6.25% of taxable income.
FEDERAL GOVERNMENT - IRS
- PIS / COFINS: reduction of 53% in the rate of 3,62.