What is the Stimulus Credit Add-on?

By Karol Alves and Felipe Lemos, from the Economic Consulting team.

(Art. 13 of State Decree No. 47,727/2023)

It is an additional incentive granted by the State, for a limited period, ensuring equal treatment by product type, in order to align the competitiveness conditions of goods manufactured or to be manufactured in the Manaus Free Trade Zone (ZFM).

The incentive may take the form of:

• An increase in the Stimulus Credit levels;

  
  

• Deferral of assessment and payment of ICMS (Value-Added Tax on goods and services);

  
  

• Granting or increase of presumed tax credit percentages;

  
  

• Granting or increase of ICMS tax base reduction percentages;

  
  

• Granting of ICMS tax base reduction for freight transportation services related to products benefiting from incentives under State Law No. 2,826/2003; and

  
  

• Granting of ICMS exemption on internal electricity supplies intended for the manufacturing of incentivized products under State Law No. 2,826/2003.

  
  

How to identify if my product has an additional tax incentive?

Currently, there are two situations in which products have an Additional Stimulus Credit:

1. Products listed in §13, Article 13 of State Law No. 2,826/2003;

   
   

2. Products that have increased levels of Stimulus Credit or any other additional incentive mentioned above, granted through a specific State Decree.

   
   

Granting and renewal of the benefit

The benefit is granted by the State Government, based on an analysis conducted jointly by SEDECTI (Department of Economic Development, Science, Technology, and Innovation) and SEFAZ/AM (State Treasury Department of Amazonas), and is valid for a period of three (3) years.

Therefore, companies must request renewal every three years, during which the State reassesses the competitiveness conditions. It is important to note that counterpart obligations are required from companies benefiting from the additional incentive.

The renewal of the granted benefit is subject to the submission of a competitiveness study, as established in Article 8, §21 of State Decree No. 47,727/2023.

• For products listed under State Law No. 2,826/2003, the study must be submitted by the last business day of June in the year the three-year period ends.

  
  

• For products benefiting from increases granted by specific State Decrees, the study must be submitted at least 90 days before the expiration date.

  
  

For more information, contact us!