Solar Panels: Exemption from Federal Taxes

Last Wednesday, 3/29, a presidential decree was published in the Official Gazette of the Union including the photovoltaic panels segment in the Semiconductor Industry Technological Development Support Program (PADIS). Thus, these panels will have a zero rate of Import Tax, IPI and Pis/Cofins. The benefit will be valid until December 2026.

Before the exemption, the Import Tax was 6%; the IPI, 6.5%; PIS, 2.1%; and Cofins, 9.65%. The benefit only applies to panels produced by companies with PADIS qualifications and an approved project.

"PADIS results in a reduction in production costs. But those who can respond about the strategy to be adopted are the companies themselves. As competition is increasing, it is likely that the reduction will be passed on to the final consumer", informed the Ministry of Development, Industry, Commerce and Services (MDIC).

It is estimated that the incentive for PADIS 2023, which encompasses semiconductors and solar panels, exceeds R$600 million. Furthermore, the MDIC expects a "significant increase [in production] in the coming years, with the generation of quality jobs".

Keep your company up to date with the tax benefits offered by the Government. Get in touch with Efficient and have quality advice at your side.

Source: G1