IT exports have tax reduction
Valor Econômico
The information technology (IT) industry has now a new incentive to increase its share in the exportation of services. Last week, President Luiz Inácio Lula da Silva signed a decree that reduces the social security duties of IT companies with activities aimed at exportation. Decree number 6945 was published yesterday, in the Official Federal Gazette (DOU).
The decree, which regulates Law number 11774, of September/2008, establishes that the INSS (Social Security National Agency) contribution - which is currently 20% - should fall by half to those exporting 100% of its services or to those companies which are exclusively aimed at such purpose. The reduction varies according to the exported volume of the company compared to what is sold in the domestic market. The decree, which is good for five years, has also released the IT exporters from the 2.1% contribution collected for the so-called S System, the group of institutions represented by agencies like Sesc, Senai and Sesi (Social Service of Commerce, National Service for Industrial Training, and Social Service of Industry).
The estimate of the Brazilian Association of Software and Service Export Companies (Brasscom) is that the reduction in the tax burden on the exporters of IT services should reach nearly US$ 70 million until the end of this year.
The benefit is also offered to companies aimed at services like analysis and development of systems, software development, development of electronic games, advisory and consulting in IT and technical support, among others. The tax release shall also be valid for companies that export telephone assistance services (call center).
According to the data of Brasscom, in 2008 US$ 2.2 billion was transacted in the exports of software and IT services. The expectation is that the sales to other countries should generate revenues of US$ 3 billion this year and US$ 5 billion in 2011. The Brazilian IT&C market currently has nearly US$ 120 billion in operations a year and employs 1.7 million people.