Brazil has extended the tax incentives for the semiconductor and information and communication technology sectors until 31 December 2029, published in Law No. 14.968, dated 11 September 2024 in the Official Gazette.
The incentives include the PADIS programme (Programa de apoio ao desenvolvimento da indústria de semicondutores – PADIS), introduced by Law 11.484 on 31 May 2007. The PADIS programme is designed to support the semiconductor industry by offering tax exemptions on PIS/COFINS, IPI, and import duties for essential software, machinery, equipment, raw materials, and tax relief on profits from qualifying product sales.
PADIS is an initiative focused on public policies relating to industry, science, technology, and innovation (CT&I). It aims to promote the implementation and maintenance of legal entities in Brazil that design, develop, design, and manufacture semiconductor devices or displays.
