Fundopem and Integrate

What is FUNDOPEM/RS?

The Rio Grande do Sul State Operation Company Fund (FUNDOPEM/RS) is the main mechanism for attracting investments in the State. The benefit is granted to companies that carry out investment projects that result in the implementation or expansion of industrial units, generating jobs and wealth in Rio Grande do Sul.

It is an instrument of partnership between the State Government and the private sector, with a view to promoting socioeconomic, integrated and sustainable development. Incentivized companies appropriate the incentive after proving that investments have been made, in the form of financing a maximum percentage of 90% of the monthly incremental ICMS due generated by the operation of the implemented project. The overall FUNDOPEM/RS funding limit corresponds to the cost of fixed investments in the supported project.

What is INTEGRAR/RS?

It is the Rio Grande do Sul Industrial Development Harmonization Program, which operates in a complementary way to FUNDOPEM/RS. It grants a discount on each installment to be paid from the FUNDOPEM/RS financing, including the principal amount financed and the respective financial charges of the installment. The percentage of abatement varies from 10% to 90%, depending on the municipality where the project is located, the number of direct jobs generated and the average wage bill of the beneficiary company's staff.

Differences between INTEGRAR/RS and the FUNDOPEM/RS:

• FUNDOPEM/RS is a partial financing of the monthly incremental ICMS, which will have to be returned in installments after the grace period.
• INTEGRAR/RS is a deduction, in the form of a percentage (established for each municipality) levied on each amortized installment of FUNDOPEM/RS financing, including the principal amount financed and the respective charges.