45.611.892 Inova Simples (I.S.) Sao Paulo
Table of Contents
Aim of Inova Simples (I.S.) Sao Paulo
It aims to simplify the processes and provide incentives for innovative projects through:
- Tax incentives and subsidies for companies investing in research and development
- Grants and loans with favorable conditions for innovative startups and projects
- Partnerships between universities, institutions, and private enterprises
- Training and qualification programs for innovation professionals
Offers of Tax Subsidies and Incentives
Tax Credit: Companies can deduct up to 5% of their Income Tax owed for investments in research, development, and innovation projects approved under the program. This tax credit can be used over five years.
Reduction of ICMS Tax: Companies receive a partial or total deduction on the ICMS tax (similar to a state VAT or sales tax) for acquiring goods and services related to approved R&D projects.
Patent Box Regime: Companies pay a reduced 9% income tax rate on profits generated from commercializing patented technologies that stem from supported innovation activities.
Subsidies for Projects: Direct financial support is provided for innovative projects through subventions, reimbursable grants, and interest-free loans. Small startups can receive R$800,000, while large companies can receive R$3 million.
Support for Innovation Agents: The program funds the creation of innovation support centers and training of specialized professionals like technology transfer experts and managers.
Tax Incentives for Angel Investors: Individuals who invest in innovative startups and companies receive deductions on their income tax equivalent to 100% of the amounts invested.
Goals of Inova Simples (i.s.) Sao Paulo
Stimulate innovation and technological development in companies based in São Paulo. The program incentivizes large, established companies and startups to invest more in R&D.
Promote the development of strategic economic sectors for the state, like health, advanced manufacturing, renewable energy, transportation, etc., by supporting innovative projects in these industries.
They are reducing the costs and risks related to innovation activities for companies. The tax incentives and subsidies under the program help defray some of the expenses of researching, developing, and commercializing new technologies.
Boost productivity and competitiveness of São Paulo’s economy through more significant private sector investment in innovation. The program supports creation of new products, services, and production processes.
Strengthen linkages between research institutions and the business world. Inova Simples encourages partnerships between universities, technology centers, and enterprises for collaborative innovation efforts.
Generate more high-quality jobs through innovative entrepreneurship. By supporting startups and helping innovations to market, the program aims to foster new companies and employment opportunities.
Increase overall expenditure on R&D in the state by both public and private sectors through incentivizing firms to allocate larger budgets to innovation activities.
How Innova Simples Help the Startups?
The startups of Innova simples are done by the following.
Direct funding: It provides grants, reimbursable grants, and interest-free loans of up to R$800,000 for innovative startup projects and proofs-of-concept. This helps de-risk early-stage ventures.
Incubators and accelerators: The program funds the creation and operation of technology business incubators and accelerators that provide startup mentorship, infrastructure, and business training.
Partnerships: It fosters collaborations between startups, large corporations, universities, and research centers to facilitate the co-development, prototyping, and piloting of innovations.
Tax incentives: Angel investors that fund eligible startups receive income tax deductions of up to 100% of investment amounts to encourage private funding.
Prototyping support: Grants are available for startups to develop initial prototypes and minimal viable products without seeking private capital upfront.
To facilitate global expansion, soft landing programs link Brazilian startups with potential customers, partners, suppliers, and investors in other regions/countries.
Showcasing events: The program sponsors exhibitions, conferences, and business competitions where startups can promote their ideas to potential buyers, investors, and partners.
The figure of 45,611,892 refers to the total number of innovation projects or initiatives that have received support through the Inova Simples program in São Paulo, Brazil. Inova Simples is a stimulus program launched by the state government of São Paulo to promote innovation and technological development. It aims to simplify processes and provide incentives for innovative companies and startups through tax incentives, subsidies, grants, and other initiatives.