Agribusiness companies in Brazil can reduce taxes through R&D

Agribusiness companies in Brazil can reduce their Corporate Income Tax and Social Contribution on Net Profit (CSLL) by investing in technological research and development (R&D) through the 'Lei do Bem' (Law of Good). This tax incentive is available to businesses taxed under the 'Lucro Real' regime and requires documented proof of research projects and expenditures.

The benefit applies to various sectors, including agricultural production, manufacturers of inputs, machinery, equipment, and agro-industries. However, individual producers acting as natural persons do not have direct access to this benefit. The mechanism allows companies to exclude between 60% and 80% of eligible R&D expenses from their tax calculation base, depending on the number of researchers hired.

According to the Ministry of Science, Technology, and Innovation (MCTI), 4,252 companies utilized these incentives in the 2024 base year, investing R$ 51.59 billion in R&D, with an estimated tax waiver of R$ 11.98 billion across the entire economy.