Brazil signs export incentives for small businesses into law

Brazil signs export incentives for small businesses into law

The Brazilian government has signed into law a bill that expands benefits for micro and small exporting companies, aiming to bolster the country's export sector amidst increasing trade tensions. The measure, part of the Acredita Exportação program, is expected to enhance the resilience of Brazil's economy in the face of potential U.S. tariffs.

The Acredita Exportação program, launched last year, increased the Reintegra tax credit rate from 0.1% to up to 3% of the exported value. The new law, signed by President Lula on Monday (28), will reimburse micro and small enterprises for 3% of their foreign sales revenue. This amount corresponds to the portion of taxes paid along the production chain by these businesses [2].

The decision comes as Brazil faces the looming threat of a 50% tariff on its exports to the United States, set to take effect on August 1. The federal government has been working on a contingency plan to mitigate the potential economic impact of the tariff. The plan includes subsidized credit and job preservation measures, with a focus on small and medium-sized enterprises [1].

While the federal government continues to negotiate with the U.S. government, several state governors have also taken proactive measures to support exporters. São Paulo Governor Tarcísio de Freitas, for instance, announced a R$200 million subsidized credit line and the release of ICMS tax credits to exporters [2].

The new law aims to provide a safety net for micro and small businesses, which accounted for 40% of Brazil’s exports in 2024. By offering tax credits and financial support, the government seeks to foster growth and maintain the competitiveness of Brazil's export sector.

References:
[1] https://valorinternational.globo.com/economy/news/2025/07/28/plan-to-counter-us-tariff-aims-to-limit-hit-to-brazils-economy.ghtml
[2] https://valorinternational.globo.com/politics/news/2025/07/24/presidential-hopefuls-in-brazil-unveil-support-plans-for-exporters.ghtml