The state government offers tax incentive programs for industrial, commercial and agricultural business, supported by state laws. Most tax incentives are reducions of ICMS tax.
In some cases credits are funded by resources like
- Fundo Constitucional de Financiamento do Norte (FNO)
- Fundo de Investimento da Amazônia (FINAM)
- Governo do Tocantins
- Banco Nacional de Desenvolvimento Econômico e Social (BNDES)
Board of Economic Development – CDE
The CDE (Conselho de Desenvolvimento Economico = State Board of Economic Development), established by Law 1746 of December 15, 2006 is the body responsible for granting and administration of tax relief programs of the State of Tocantins. The CDE also has an important assignment to propose fiscal policies to the State Government, as well as contribute to the sustainable development process.
The directors meet once a month to consider and act on the processes of the companies that plead for the tax benefits granted by the Government. Companies wishing to be included in incentive programs should look to the Department of Industry and Trade to receive help with the procedures.
Along with the CDE was created the Fundo de Desenvolvimento Econômico (Economic Development Fund), to replace the old Fundo Prosperar. The FDE is intended to support the economic development of the state, with sources that enable actions for economic growth and contribute effectively to generate employment and income.
Examples of fiscal incentives:
- Agência de Fomento (working with budgetary resources)
- Programa Prosperar (Program to Encourage Economic Development of the State of Tocantins)
- Programa Proindustria (Directed Industrialization Program)
- E-Commerce: Retail trade incentive in goods exclusively via the internet
- Programa dos Complexos Agroindustriais de Aves, Suínos, Caprinos e Ovinos (Agroindustrial Complex Program of Poultry, Pigs, Goats and Sheep)
- Incentivo ao Comércio Atacadista e Distribuidores de Medicamentos (Incentives to Wholesalers and Distributors Medicines)