Lei do Bem

The "Lei do Bem" is a significant fiscal incentive in Brazil aimed at promoting Research, Development, and Innovation (R&D&I) activities within companies, contributing to technical-productive capacity development and increasing the added value of goods and services. Utilizing the Lei do Bem requires a detailed presentation of R&D&I projects, highlighting scientific and technological advancements and describing applied methodologies.

Development of new products or processes

Improvement of existing products or processes

Creation of incremental innovations resulting in quality or productivity improvements

Examples of Eligible Projects

• Development of a compact, efficient electronic circuit resulting in a portable medical device
• Introduction of a new agricultural process that boosts productivity and improves resource efficiency
• Innovations in manufacturing processes that lead to significant waste and emission reductions

Operating expenses for R&D activities.

Contracts made with universities, research institutions or independent inventors

Transfers to MSEs and Independent Inventors.

Deduction of up to 60% of R&D&I expenditures from the IRPJ and CSLL tax bases

Additional incentives may be granted for hiring researchers (up to +20%) or depending on the number of researchers employed

Companies must engage in R&D&I activities

Must be taxed under the Real Profit regime

Must have generated profit during the period for which they seek to use the benefits