On March 3rd the President of Brazil approved Law Nº 11.908 article 11 of which authorizes Information and Communication Technology companies to double their tax breaks on net profit for spending on training people in software development. After a marathon in the national Congress, since the veto of article 13 of Law Nº 11.774, the tax break will now be allowed, in the identical format as in article 13 of Provisional Measure 428 (in the current Law 11.774). The tax break is self-applicable and does not depend on Federal government regulation, and hence is not subject to the unpredictable variations in Law 11.774, whose regulation is still being discussed in the government.

?ICT companies in Brazil have a not-inconsiderable cost factor in training professionals that join them. This is because universities are not able to train professionals who are ready for the job market?, says Edmundo Oliveira, director of Regulatory Framework at Brasscom. ?The companies have to bear the full cost, which now changes a little with these tax breaks.?

Dedicated to the interests of the ICT sector, Brasscom did its utmost in October and November last year to arrive at an understanding with the Treasury, the Houses of Representatives and the Senate to get article 13 of Provisional Measure 428 approved and not vetoed. With presidential approval, the effort has paid off. ?Now, with this tax break, companies will find it easier to invest in training programs, reducing costs?, says Sérgio Sgobbi, director of Education and Training at Brasscom.

As the measure applies to the market as a whole, says Edmundo Oliveira, companies will be able to boost their competitiveness on the domestic and export markets, especially at this time of global economic crisis. ?Information technology is part of the solution to employment challenges in the medium and long term, as it increases firms? competitiveness and allows them to rebuild their financial muscle,? adds Oliveira.