AFFECTED FLOWOutflow (subsidised)
ANNOUNCED AS TEMPORARYYes
Tax-based export incentive
On October 21, 2015, the Government of Brazil adopted Decree 8,543 reducing the compensation rates set on Decree 8,415 set for the REINTEGRA regime. The new applicable value has been set at 0.1% starting December 1, 2015, and valid until December 31, 2016. The previously applicable export rebate was set at 1% (please, see related state acts).
The program gives exporters of domestically manufactured goods a tax refund, now equivalent to 0.1% of the value of their exports, which then can be used either as a credit against their taxes or turned into a cash payment.