Positive ‘Energy’- investment opportunities in Brazil

New government incentives make foreign investment into the Brazilian energy sector particularly attractive to suppliers in the wind/solar power, electricity and fuel sectors.  

The Brazilian economy remains one of the most attractive for foreign investment. According to a recent United Nations report, Brazil ranked sixth in the world rankings in 2014 for attracting foreign investment. 

The decline in the value of the Brazilian Real against the US dollar in 2015 means that Brazilian assets have become a great opportunity for international investment. Current economic difficulties should be set against a backdrop of good medium to long term growth prospects and strong financial and legal institutions. 

In December 2015 the Brazilian Government approved the Ten Year Plan for Energy Expansion (PDE) 2024, with an estimated investment of R$ 1.4 trillion (US$ 350 million) in electricity, oil, natural gas and biofuels. 

The Ministry of Mines and Energy, reported on its "Wind Power in Brazil and in the World" newsletter, that in 2014 Brazil was ranked 4th in the world in terms of expansion in wind power, and climbed five places in the global ranking of total capacity installed. Currently is the 10th place in generation (15th in 2013).

 

FURTHER DETAILS

The energy expansion plan, offers tax incentives for certain phases of implementation:

  • Exemption, until 2021, of VAT - ICMS (state tax) for equipment and components acquisition related to solar and wind power generation.
  • Immunity to the Tax on Industrialized Products - IPI (federal taxes), on electricity, petroleum, fuels, and minerals. 
  • Immunity to the Tax on Industrialized Products - IPI (federal taxes), on electricity, petroleum, fuels, and minerals.
  • Exemption from VAT tax - ICMS (state tax) on the electricity generation and distribution.

There are certain technical criteria that must be demonstrated in order to qualify for these tax benefits. The AGN member firm in Brazil has experience to provide proper guidance.

 

Contact the AGN Firms best prepared to provide further information:
RENGI TREVOR 

Contact Person: Roberto Evangelista
Phone: (+55 11) 2129 8980
EMail: roberto.evangelista@rengitrevor.com.br
Firm website: www.rengitrevor.com.br

AGN International Ltd is a company limited by guarantee registered in England & Wales, number 3132548, registered office at 24 Greville Street, London EC1N 8SS, United Kingdom.

AGN International Ltd (and its regional affiliates; together "AGN") is a not-for-profit worldwide membership association of separate and independent accounting and advisory businesses. AGN does not provide services to the clients of its members, which are provided by Members alone. AGN and its Members are not in partnership together, they are neither agents of nor obligate one another, and they are not responsible or liable for each other's services, actions or inactions.

This communication is generic in nature, for general information only and does not constitute professional advice. It should not be relied upon in arriving at any decision, and no responsibility is accepted. Salient facts should be verified and professional advice should be taken before taking or refraining from any course of action.

Copyright © 2015 AGN International Ltd, All rights reserved. You are receiving this because you are a member of AGN International Ltd



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AGN International Ltd is a company limited by guarantee registered in England & Wales, number 3132548, registered office 6 Hays Lane, London Bridge, London SE1 2HB, United Kingdom.
AGN International Ltd (and its regional affiliates; together "AGN") is a not-for-profit worldwide membership association of separate and independent accounting and advisory businesses. AGN does not provide services to the clients of its members, which are provided by Members alone. AGN and its Members are not in partnership together, they are neither agents of nor obligate one another, and they are not responsible or liable for each other's services, actions or inactions.

Copyright © 2020 AGN International Ltd, All rights reserved. You are receiving this because you are a member of AGN International Ltd




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