10/1/2020
At the end of 2019, the Legal Framework for Startups was presented to the National Congress, aiming at a legislative innovation to consolidate the startups market in Brazil. This regulation aimed to structure a favorable, legally safe and less bureaucratic environment for the constitution and development of Brazilian startups.
Unfortunately, the Legal Framework for Startups, which is being voted on under the priority procedure, had its progress stopped due to the COVID-19 pandemic, and has been awaiting analysis since 03/10/2020.
On the other side of the coin, there is the fact that the pandemic has come to prove that now, more than ever, it is necessary to invest in technology, attracting startups, companies whose main scope is technological innovation, to the Brazilian market. It was in view of this scenario that two important regulations will have their content updated: the Legal Framework for Startups and Law 11.196 / 05, entitled Lei do Bem.
The Lei do Bem creates the granting of tax incentives for legal entities that carry out development research and technological innovation. Among the main benefits are the 50% reduction in the Tax on Industrialized Products (“IPI”), and the reduction to zero of the withholding income tax rate of remittances made abroad for the registration and maintenance of trademarks and patents.
Still on the Law of good, the Ministry of Science, Technology and Innovations has not yet disclosed exactly what will be the changes in that law, but most likely, there will be the creation of new tax benefits for startups. However, although it is already possible to create expectations about the changes foreseen in the Lei do Bem, startups should expect the fruits of such tax incentives only for the future, on average three to five years from 2020.
In the case of the Legal Framework for Startups, there is still no way of knowing exactly how the points of the update text will be addressed, since it should be sent to the National Congress by 10/9/2020, but what we can say is that the new device, if accepted, will allow startups to participate, even, in bids to improve the provision of public services, considering that another point of attention after the COVID-19 pandemic was the need for public services to be always in operation.
Therefore, we can expect a large investment from the Federal Government in attracting startups to Brazil, which involves everything from the inclusion of startups to provide public services, to guarantee their operation and cost reduction, to potentialize the private market for services provided. by startups, which will have greater competitive strength with incentives brought by these new laws.
Coauthors: Cássia Monteiro, Nathalia Fernandes Gonçalves and Luísa Oliveira Ramos
