by Edmo Colnaghi Neves (PhD), Murray Advogados, Brazil

The “tariff hikes” imposed by the United States have led the Brazilian government to adopt several measures aimed at mitigating the effects of such policy and protecting Brazilian companies adversely affected.

Among the initiatives, the most relevant are the establishment of Credit Lines and Tax Incentives. To support exporting companies directly impacted by the increased U.S. tariffs, the Brazilian government implemented special credit lines for exporters, through the Brazilian Development Bank (BNDES) and commercial banks, in order to help maintain competitiveness.

In addition, tax reductions or exemptions were granted in specific sectors to alleviate the financial impacts on export companies.

One example of a tax incentive implemented by the Brazilian government, particularly in scenarios of competitive disadvantage such as the U.S. tariff hikes, is “Reintegra” – the Special Regime for the Reimbursement of Tax Values for Exporting Companies. This incentive was established to reimburse exporting companies for a portion of the indirect taxes accumulated throughout the various stages of production of exported goods. Its purpose is to offset the “embedded” tax costs in products destined for the international market, thereby enhancing their competitiveness.

Companies exporting domestically produced goods may apply for reimbursement of up to 2% (two percent) of their export revenues (a rate subject to variation over time and depending on government budget constraints). The reimbursed amount corresponds to residual taxes in the production chain, such as IPI (Excise Tax on Industrialized Products), PIS/Pasep and Cofins, which could not previously be eliminated.

In addition to Reintegra, other commonly used tax incentive mechanisms include:

• Corporate income tax reductions for companies engaged in export activities;
• Exemption from ICMS (State Value-Added Tax on Goods and Services) on products exclusively destined for export;
• Payroll tax relief for sectors particularly affected.

Other developments stemming from the U.S. tariff hikes to support Brazilian companies include: extension of export commitments under the “drawback” regime (Provisional Measure No. 1309); government procurement of products affected by the tariff hikes with exemption from public bidding procedures (Interministerial Ordinance MDA/MAPA No. 12/2025); and Ministry of Finance Ordinance No. 1862/2025, which established priority in the processing of tax credit reimbursements and the deferral of federal tax payments.

These incentives allow companies to operate more efficiently and to face the challenges arising from tariff barriers or unfair competition in international markets.

September 2025