The funding of infrastructure projects in Brazil may be structured through financial instruments that benefit from zero or reduced withholding income tax on the respective earnings, if the required conditions are met. Among them are the successful debentures created by Law 12,431/2011, known as debêntures incentivadas.
On March 26th, 2024, the federal government enacted Decree 11,964, that overhauls the debêntures incentivadas regulations as well as establishes the rules applicable to the other infrastructure-targeted debentures, bonds and funds recently created by Law 14,801/2024, including the definition of which sectors of economic activity are eligible for the tax incentives.
Concurrently, important legislative changes and innovations are on the way. Some are highly anticipated by investors, such as corporate income tax relief via R$ 18.3 billion in credits to be granted (between years 2028 and 2032) to low-carbon hydrogen producers and consumers, set forth in legislative bill 3,027/2024 approved by Brazilian Congress on August 12th.
Other welcome measure recently enacted is Decree 12,153/2024 (concerning the “Gas para Empregar” program) that, while enabling increased investment in the natural gas chain which is vital for the energy transition in Brazil, triggers interesting questions about the applicable taxation. And the consumption taxes framework resulting from the constitutional reform approved last year is not yet very clear on the extent to which the existing ICMS and PIS/COFINS benefits shall transpose to the new VAT.
Whatch the recap of our webinar to know more about these new developments and draw from the expertise of our invited panellists, who represent a United Kingdom-based investment fund and a Brazilian law firm that specialises in such infrastructure projects.
Opening
- Vera Innes, Chair of the Brazilian Chamber of Commerce in Great Britain
- Gustavo Braga, founding partner at BBSA – Braga & Bastos Soc. Adv. and Head of the Tax Committee of the Brazilian Chamber of Commerce in GB
Brazilian legal perspective
- André Carvalho, tax partner at Veirano Advogados
UK investor perspective
- Isabella da Costa Mendes, founding partner and co-CEO at Impacta Global
Q&A Session
- Online participants will be able to submit written questions via Teams platform
