Brazil’s MDIC has set new tax waiver limits and accelerated depreciation rules to incentivise investment in machinery, equipment, and fixed assets across key industries.
Regfollower Desk
Brazil’s Ministry of Development, Industry, Trade, and Services (MDIC) has published Ordinance GM/MDIC No. 281 on 23 October 2025, establishing new tax waiver limits for companies investing in machinery, equipment, and other fixed assets across key sectors of the Brazilian economy.
According to MDIC, the move is designed to encourage modernisation of industrial equipment, foster economic growth, and support Brazil’s competitiveness in critical industries.
The ordinance, effective immediately, provides differentiated accelerated depreciation quotas, allowing eligible companies to reduce taxable income by applying faster depreciation on new equipment.
Under the new rules, the maximum annual tax waiver per economic activity is set at BRL 200 million, with a total yearly cap of BRL 1.7 billion across all sectors. The list of eligible activities includes food and textile manufacturing, clothing and footwear production, wood, metal, and machinery industries, pharmaceuticals, chemicals, biofuels, furniture, construction, infrastructure works, and land transportation.
This ordinance replaces GM-MDIC No. 439/2024 and streamlines rules for companies seeking to take advantage of accelerated depreciation benefits.
This Ordinance entered into force on the date of its publication.
