By Brazil Stock Guide – Mato Grosso state has revised the rules governing tax incentives for processed soybeans, setting stricter conditions tied to local industrial activity, storage infrastructure and fiscal controls.
Under Decree No. 1,794, the state allows tax benefits under the Industrial and Commercial Development Program of Mato Grosso, known as Prodeic, to be extended to bulk soybean operations in limited cases. Eligibility depends on meeting criteria designed to promote value-added processing and prevent market distortions or losses in value-added tax revenue.
The new framework requires that soybeans eligible for the incentive be produced within Mato Grosso and processed by the taxpayer in its own facilities. Companies must also demonstrate that processing takes place at storage units located in the state, with the use of shared or condominium warehouses permitted if they are properly licensed.
Access to the benefit will depend on specific accreditation and an on-site technical inspection by the state finance department. The treasury will set an overall cap on the use of the incentive for each period, while the state’s industrial development council will define individual limits for each participating company.
The decree bars the incentive from being granted if the extension of the benefit results in shortages of soybeans for local processing plants, a provision aimed at safeguarding supply for in-state industry and maintaining competitiveness across the production chain.