1. Seminar Invest in Brazil:
Opportunities for Displays
Washington State Convention Center
Seattle, WA, USA
May 25th, 2010
Ministry of Development,
Industry and Foreign Trade

2. The Brazilian Displays and
Semiconductor Industry
Support Program
Ministry of Development,
Industry and Foreign Trade

3. PADIS
José Ricardo Ramos Sales
Foreign Trade Analyst
jose.sales@mdic.gov.br
Ministry of Development,
Industry and Foreign Trade

4. PADIS PADIS is the Brazilian Program for the
Development of Display and
Semiconductor Industry
Created by Law 11,484 - May 31st,
2007
That Law also makes provisions on new
regulation for intellectual property rights
on integrated circuits topography:
Investment protection
Compliance with international IP
agreements

5. Companies which invest in Research &
PADIS Development (R&D) and manufacture, in
Brazil:
Beneficiaries Flat panels (as an input to electronic
equipments and includes LCD,
PDP/Plasma, LEDs, OLEDs and TFEL)
a) Concept, development and design; or
b) Manufacture of optoelectronic and
photonic devices, including those
applicable to displays; or
c) Final assembly, electrical and optical
tests of panel modules.
OBS: 1) It does not include CRT

6. Companies which invest in Research &
PADIS Development (R&D) and manufacture, in
Brazil:
Beneficiaries Semiconductor electronic devices
(headings 8541 and 8542 of NCM)
a) Concept, development and design; or
b) Diffusion (front-end); or
c) Encapsulation and test (back-end).
OBS: 1) Module assembly is not included
2) Photovoltaic cell is included
3) Chip on board is included

7. PADIS For the acquisition of
materials and design tools:
equipments,
Value added taxes
Federal
Incentives Social Security Contributions => from
9,25% to 0%
Tax on Industrialized Products => from
up to 15% to 0%
Import Tax – for inputs (supplies) and
equipments
Possibility of reduction to 0%

8. For the commercialization of displays or
PADIS semiconductor devices:
Value added taxes 1
Federal
Social Security Contributions => from
Incentives 9,25% to 0%
Tax on Industrialized Products =>
from up to 15% to 0%
Corporate Income Tax => from 15% to
0%
1
Restrictions may apply. Refer to Brazilian Regulation
for more information.

9. PADIS Reduction to 0% of Social Security
Contributions (PIS-PASEP/COFINS, PIS-
PASEP/COFINS-Importation) and of Tax on
Federal Incentives Industrialized Products (IPI)
Validity
Situation: when the beneficiary of PADIS
purchases in the domestic market or imports
machinery, devices, instruments,
equipments, softwares and inputs to
manufacture displays and semiconductors.
Validity: until January 22, 2022.

10. PADIS Possibility of reduction to 0% of the
Import Tax
Federal Incentives
Validity Situation: when the beneficiary of
PADIS imports machinery, devices,
instruments, equipment, softwares and
inputs (supplies) mentioned in an act of
the Executive Branch, to manufacture
displays and semiconductors. That Act will
determine the list of goods, the conditions
and the validity of the incentive.

11. Reduction to 0% of the Contribution for
PADIS Intervention in the Economic Domain (CIDE)
destined to fund the Program for Encouraging
University-Enterprise Integration for
Federal Incentives Supporting Innovation mentioned by Article 2
of Law no. 10,168, of December 29, 2000.
Validity
Situation: In remittances abroad for
payment of agreements related to
exploitation of patents and use of trademarks
and agreements for the supply of technology
and technical assistance, when conducted by
the beneficiary of PADIS and linked to
manufacture of displays and semiconductors.
Validity: 12 or 16 years, from the date the
project is approved – more time to the
projects with more value.

12. PADIS Reduction to 0% of Social Security
Contributions2 and of Tax on
Industrializaded Products
Federal Incentives
Situation: On sale of displays3 or
Validity semiconductors.
Validity: until January 22, 2022.
2
This reduction is also applicable to revenues
resulting from the sale of design, when performed
by the beneficiary of PADIS
3 Restrictions may apply. Refer to Brazilian
Regulation for more information.

13. PADIS Reduction to 0% of the Income Tax
rates and additional tax charged on
exploitation profits.
Federal Incentives
The income tax reduction is also
Validity applicable to revenues resulting from the
sale of design, when performed by the
beneficiary of PADIS.
Validity: 12 or 16 years, from the date
the project is approved – more time to the
projects with more value.

14. PADIS Project approval by the Ministries of
Development, Industry and Foreign
Trade (MDIC), Finance (MF) and
Requirements Science and Technology (MCT).
Fiscal regularity in Brazil
Invest in R&D activities performed in
Brazil at least five percent (5%) of its net
revenues earned in the domestic market.

15. PADIS Higher national production, with value
and specialized competence in project,
development and manufacturing of
displays and semiconductor electronic
Expected devices.
results
A strong displays and semiconductor
sector in Brazil can allow a competitive
insertion in the global market, with
exports and great reduction of imports.
Benefits to several productive chains
which are big consumers of those
components (Information and
Comunication, Automotive, Agribusiness,
Textiles and so on).

16. PADIS PADIS can provide you good
conditions to explore
Benefits to interesting markets by
investors designing and
manufacturing displays and
ICs in Brazil without paying
taxes and obtain other state
incentives. And also exporting
to Latin America and other
markets.

17. Thank you very much!
Ministry of Development,
Industry and Foreign Trade