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Investor Presentaiton

38 How to INVEST in São Paulo STATES 39 TAX INCENTIVES With the objective of reducing cost of production and stimulating the growth of São Paulo's economy, the state government offers several fiscal incentives benefitting a wide range of sectors. Below are some examples: • Reduction of the rate of the ICMS tax (VAT) levied on toys, leather goods and shoes, food products and cosmetics, among others, from 18% to 12%; • Use by member companies of the São Paulo System of Technology Parks of ICMS credits granted until December 31, 2012, or liable to be granted, for payment of certain products as defined by law; • The "Pró-Veículo" Program is an investment tax incentive for automobile manufacturers. Companies which present projects for investment in plant expansion and modernization, construction of new factories, development of new products or expansion of their businesses in the state can use ICMS credits granted until December 31, 2012, or liable to be granted, for payment of certain products as defined by law; • The "Pró-Informática" Program is an investment tax incentive for investments by manufacturers of products for the electronic data processing industry. Companies which present projects for investment in plant expansion and modernization, construction of new factories, development of new technologies or products or expansion of their businesses in the state can use ICMS credits granted until December 31, 2012, or liable to be granted, for payment of certain products as defined by law; • The "Pró-Trens" Program is an incentive for the railway industry which suspends the payment of ICMS taxes, on the importation of products not produced in Brazil. Other tax benefits have also been granted for industries such as household appliances, wood products (MDF sheets), furniture and capital goods. All laws granting tax benefits in São Paulo State can be accessed on the website of the Finance Secretariat: www.fazenda.sp.gov.br BNDES SOURCES OF FINANCE The Brazilian Development Bank (BNDES) is an agency of the Federal Government which provides long term financing for investments in all areas of the economy. Support from the BNDES is provided through the financing of investment projects, equipment purchases and exportation of goods and services. The Bank also provides resources to strengthen the capital structure of private companies and finances on a non-reimbursable basis projects that contribute to social, cultural and technological development. To learn more, please visit their website at www.bndes.gov.br Finep The Studies and Projects Finance Organization (Finep), in conjunction with policies of the Ministry of Science and Technology (MCT), works in all aspects of the process of innovation. It supports both public and private research, as well as development projects for companies of all sizes. Finep's funding is directed to actions that are strategic, structuring and of high impact for Brazil's sustainable development. Financing is provided through public selection and special programs and can be either non-reimbursable or reimbursable with special interest conditions. To learn more, please visit their website at www.finep.gov.br Nossa Caixa Desenvolvimento The development agency of São Paulo State was founded in March 2009. Its role is to offer support and incentives, by means of credit lines, to promote the economic development of small and medium companies in São Paulo State. These credit lines offer special, below market interest rates, terms and conditions for investment and working capital. To learn more, please visit their website at www.nossacaixadesenvolvimento.com.br
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