Sovereign Brazil Plan (Plano Brasil Soberano)

Sovereign Brazil Plan (Plano Brasil Soberano) is sponsored by Brazilian Government (Banco do Brasil, Caixa Econômica Federal, and other accredited institutions with backing from FGO, FGI, FGCE). This program by the Brazilian government offers credit lines and tax incentives (Reintegra) to support exporting companies.

Small and very small businesses can access credit lines, backed by guarantee funds, and benefit from tax reimbursements on exports.

Brazil: New Measures Offer Credit, Guarantees and Incentives to Exporters in Brazil - LexLink Brazil: New Measures Offer Credit, Guarantees and Incentives to Exporters in Brazil Last August 13th, the Brazilian government announced a set of measures to support exporting companies amid a scenario of uncertainty in international trade.

Named the “Sovereign Brazil Plan,” the program contemplates up to R$30 billion in credit lines aimed at companies affected by trade barriers and in need of preserving jobs and sustaining their operations. In addition to the injection of funds, one of the most anticipated measures was the extension of Reintegra, a mechanism that returns part of the taxes levied on exports.

This benefit, the continuity of which was being challenged, is now guaranteed until December 2026, at a 3. 1% rate for medium and large companies and up to 6% for very small businesses and small companies. The government expects this extension to represent approximately BRL 5 billion in tax incentives for the industry.

The credit rules were also detailed. Large companies may take out up to 200 million in transactions, and very small business and small companies will have a limit of up to BRL 35 million, always due within up to ten years and with a two-year grace period.

Credit shall be extended especially by banks such as Banco do Brasil and Caixa Econômica Federal, in addition to other accredited institutions, but these entities will not carry the full risk: the contracts are backed by guarantee funds — such as the FGO (Transaction Guarantor Fund), the FGI (Investment Guarantor Fund), and the o FGCE (Foreign-Trade Guarantor Fund) —, which received an additional contribution in the amount of BRL 4.

5 billion. The FGO, for example, can cover up to 100% of each transaction, within certain limits, which reduces the risks for banks and expands the possibilities of credit approval for companies. Another important front is the tax area.

Exporting companies have been given priority in the reimbursement of tax credits and were able to postpone the payment of taxes: obligations due in August were transferred to October, and those due in September were transferred to November, contributing to immediate relief for the companies’ cash flow. The government also authorized an exceptional extension of the drawback regime for up to one year in contracts with the United States.

Additionally, it allowed part of the production that was not exported to be absorbed through public procurement, especially food supplies destined for schools and hospitals. The announcement was welcomed with relief by industry representatives, who had been calling for more concrete measures to address the effects of external restrictions for months.

For many companies, especially smaller ones, subsidized credit and tax predictability mean not only an incentive but the very condition for continued operation in the market. For foreign companies established in Brazil, the package offers a rare combination: easier access to credit, tax stability, and institutional guarantees, factors that weigh heavily when deciding whether to maintain and expand investments in the country.

Although some details — such as interest and eligibility criteria — still require regulation, the plan shows a clear attempt at offering security and stability at a challenging moment. More than a one-time response, the program aims to give companies a planning horizon in an increasingly uncertain international trade environment. For more information on the above or other matters, please contact Maristela SA Rossetti ( mar@rraa.

com. br ) or Gilberto Rossetti ( gmr@rraa. com.

br ). This article is based on publicly available information and given for informational purposes only. It is not intended as legal advice foreign subsidiary as a comprehensive analysis of the matters referred to herein.

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