Law No. 14,871/24 established differentiated accelerated depreciation quotas for new machinery, equipment, devices, and instruments intended for fixed assets, to be used in specific economic activities that would be defined in regulation.

In this sense, Decree No. 12,175/24 regulated the topic and defined the eligible economic activities, but established new rules, such as: (i) prior registration before the Brazilian Federal Revenue Service (RFB); (ii) only acquisitions of specific goods, listed in a

Joint Act of the MDIC (Ministry of Development, Industry, Commerce and Services) and MF (Ministry of Finance), may be included in the benefit; (iii) the main National Classification of Economic Activities (“CNAE”) with the respective tax waiver limits must be indicate in Decree; (iv) requirements related to sustainability and promotion of the national industry will be mandatory; and (v) the Government will monitor and evaluate the use of the benefits through audits and reports.

MDIC/MF Ordinance No. 74/24 published the TIPI codes that fall within the list of economic activities covered by the differentiated accelerated depreciation, including the manufacture of food products and agricultural pesticides. Click here to access in portuguese.

Although the Decree came at an opportune time and was expected by the market, it is important to note that: (i) the Executive branch regulated not only the industries, but also the specific assets within each industry that could use the accelerated depreciation; (ii) the use of the benefit was limited to the main activity of the taxpayer only; and (iii) the benefit was segregated by industry with specific limits.

We remain available to comment.