ATTENTION: R&D INVESTMENT DEADLINE – BASE YEAR 2024

By Adria Jesus and Nathalia Gabriel, partners in the R&D (Research, Development & Innovation) Department.

The Ordinance No. 9,835, dated November 17, 2022, establishes in Article 9 the deadlines for Research, Development, and Innovation (R&D) investments related to each base year.

Legal Reference

Art. 9. Investments in R&D for the base year may include:

I – expenditures made until March 31 of the year following the base year, under the modalities listed in subparagraphs “a,” “e,” and “f” of item I and “d” of item II of Article 6.

Practical Implication

Therefore, to meet the obligations for the 2024 base year, companies must complete their R&D investments by March 31, 2025, in accordance with the modalities regulated under the current legislation.

Important Notice

If the investments are not carried out within the deadline, the company must pay the outstanding balance updated by the Long-Term Interest Rate (TJLP), plus a 12% fine, as provided in § 4 of Article 9:

Art. 9, § 4. The disallowed amount, in case of rejection of expenses from the resources mentioned in item III of the main clause, shall be updated under a simple regime by the Long-Term Interest Rate (TJLP), increased by twelve percent, once only, and charged together with the deficits determined in the base year following the approval of the advance.

Tip

If the company did not develop internal projects, but made external investments, those may count toward meeting internal R&D investment requirements, provided they comply with the modalities set forth in the legislation.