Agribusiness companies have until the end of this month to inform the government about investments in research, development, and innovation that could lead to a reduction in their tax bill. This benefit is provided for in... Law of Good and can be used by companies taxed by Actual Profit that meet the requirements of the legislation.

According to the rule, it is possible to exclude from the calculation base of IRPJ (Corporate Income Tax) and CSLL (Social Contribution on Net Profit) up to 60% of expenditures with technological research and development of technological innovation. The percentage can reach 80% depending on the number of researchers hired., In addition, there are further incentives in specific situations, such as patents and plant varieties.

To the Information regarding investments made in 2025 should be sent to Ministry of Science, Technology and Innovation. The opportunity is aimed at agribusiness companies that already have projects for product development, testing, research or new technologies, but may not be taking advantage of the tax incentive.

The legislation also provides for a reduction of 50% of IPI (Tax on Industrialized Products) on the purchase of machinery and equipment intended for research and development.

Among the improvements and innovations are: product development, process improvement, testing of new technologies or creation of solutions for the field, machinery innovations, use of AI, development of biological inputs, pest control, etc.

Surveys by MCTI show that, in the previous cycle, more than 4,200 companies invested R$$ 51.59 billion in innovation, generating R$$ 11.98 billion in tax incentives.

The Innovation Law does not require a company to artificially create a project to obtain the benefit. What matters is proving that there was indeed research, development, or technological innovation, and that the expenses are related to these activities.

Source: CNN, Agrimedia