THE MANAUS FREE TRADE ZONE AND TAX LAW: AN APPROACH TO TAX INCENTIVES

Abstract

The Manaus Free Trade Zone (MFTZ) is a Brazilian regional development program created in 1967 in order to improve the socioeconomic conditions of the Amazon region. The program offers several tax incentives to local entrepreneurs, such as federal tax exemption, state tax reduction and exemption from import duties. The objective of these incentives is to stimulate economic development in the region. The MFTz tax incentive program is based on a series of tax provisions, such as tax exemption for companies established in the MFTz, federal tax exemption, state tax reduction, and exemption from import duties for goods produced in the MFTz. In addition, companies in the MFTz also benefit from special tax incentives, such as tax credits to encourage production and modernization of local industry. From the context presented, this research aims to answer the following question: What is the impact of tax incentives offered by the Manaus Free Trade Zone on Brazilian tax law? The objective of this study is to analyze the impact of tax incentives offered by the Manaus Free Trade zone on Brazilian tax law. The article was prepared based on documentary research, conducted through the analysis of texts published by leading authors on the subject, which were used as a basis for the formulation of theses and conclusions. The tax incentives offered by the MFTz have been quite effective in creating jobs, reducing regional inequalities and modernizing the local industry. These incentives have also contributed to the economic development of the region, such as the increase in GDP and the increase in the level of employment.