Own and Incentivized Resources
Brazilian law has mechanisms in place for direct investment by Natural or Legal entities that can be deducted up to certain percentages of taxes owed. The best known example is in the Culture area, with the so-called Rouanet Law. The understanding that ENGIE and other institutions share is that, for certain specific purposes, business or individual initiative can be more effective than the State’s – which, in such cases, operates by approving submitted projects and supervising the use of incentivized resources.
ENGIE examines funds invested through tax benefits with the same rigorous gaze that it applies to its own funds. In any case, ENGIE prioritizes the proposition of or support to projects with prospects of continuity and economic self-sufficiency after the initial funds injections, that are socio-economically sustainable, and that are in fact compatible with the purposes of tax incentives laws.
Benefits of Tax Incentives
Public funds invested in a participative manner
The community can select its own projects
Companies and citizens decide how to use a portion of their taxes
Culture, sports, health, senior citizens, youths and children benefit
Tax Benefit Laws
The tax incentive laws with the most benefits for communities of which ENGIE Brasil is a part are as follows.