Eastern Zone Fiscal Incentives

Through the Law 15.931/2013T, the City of São Paulo created the Tax Incentive Program for Service Providers in the Eastern Zone of São Paulo, aiming to promote and foster the proper development of the area, encouraging the setup of intensive job generation companies. The program provides tax benefits to specific sectors and to companies already established or seeking to establish themselves in the area. The incentive area is shown in yellow on the map above, surrounding the Jacu-Pessego Avenue and Radial Leste Avenue.

To access the registration site, click here (site available only in portuguese)

Why invest in the Eastern Zone of São Paulo

The Eastern Zone of São Paulo could be a city on its own: it has 326.8 km², an area similar to the city of Belo Horizonte (Brazil), and a population group of over four million people, larger than Uruguai, Paraguai and other countries. Only one neighborhood of the Eastern Zone, Mooca, represents 12% of São Paulo´s GDP.

Strategic Location

The Eastern Zone is connected to the major highways of the country, such as the Presidente Dutra and Ayrton Senna da Silva highways leading to the state of Rio de Janeiro, Fernão Dias highway leading to the state of Minas Gerais, and the Rodoanel and the Jacu Pessego Avenues, the main access between Guarulhos International Airport (20km away from the Itaquera Stadium) and the Port of Santos (60 km away from the Itaquera Stadium). 

Availability of Labour Force and Talent Retention

There is plenty of workforce available in the Eastern Zone of São Paulo: 2.3 million economically active people, from a variety of fields; of those, 1.8 million move to other regions daily to work.

The search for talents in the East Zone is facilitated by the provision of vocational and higher education: more than 30,000 enrollments in 2012 in the 84 vocational schools, presence of USP Leste and the future installation of UNIFESP campus.

Complete Infrastructure

The region is provided with robust infrastructure: water, sewer, electricity and gas in virtually 100% of the incentivized area, as well as telecommunications infrastructure for 2G, 3G and 4G.

Quality of life

The eastern region has leisure facilities and quality of life for the population:

205 sports, leisure and recreation equipments
11 Shopping Centers
25 theaters
78 movie theaters
6 museums
15 parks
1,240 daycare centers
51 hospitals

Focus area of ​​government incentives 

The eastern region is part of a broad plan of investment in railway and metro and bus lanes by 2025

Benefits

The Municipal Law No. 15.931/2013 provides tax incentives for the Eastern Zone of São Paulo, as defined in the figure below

Legislation Category IPTU (Property tax) ISS (Service tax) ITBI (Transaction tax) ISS construction (Service tax for construction) 
Law 15.931/2013 Percentual 100% reduction Up to 60% reduction 100% reduction 100% reduction
Period of Time 20 years 20 years - -

 

Sectors

The sectors encouraged are: 

  • Computer Services 
  • Call Center 
  • Data Center 
  • Accomodation of any nature 
  • Education Services 
  • Public health, medical, veterinary, and personal care 
  • Installation, assembly, maintenance and repair of machinery and equipment 
  • Tailoring, sewing, laundry; carpentry and blacksmithing

Find out more

Contact São Paulo Negócios to understand how we can help your company to be established in São Paulo 

 

Source:  Site da Prefeitura;