Fundopem and Integrar
What is FUNDOPEM/RS?
The RS State Company Operating Fund (FUNDOPEM/RS) is RS’s main mechanism of investment attraction. The benefit is granted to companies that carry out investment projects that result in the establishment or expansion of industrial units, generating jobs and wealth in Rio Grande do Sul.
It is a partnership tool of the state government with the private sector for the promotion of socio-economic, integrated and sustainable development. Companies that apply for the incentive receive it after proving that the investments have been done, in the form of financing of a maximum percentage of 90% of the monthly incremental due ICMS generated by the operation of the implemented project. The overall limit of the financing of FUNDOPEM / RS is equal to the amount of the cost of fixed investments of the supported project.
What is INTEGRAR/RS?
It is the RS Harmonization Program of Industrial Development that is complementary to FUNDOPEM/RS. It grants a rebate on each installment to be paid from the FUNDOPEM/RS funding, including the main amount financed and the related interest charges of the installment loan. The reduction percentage varies from 10% to 90%, depending on the municipality where the project will be located, on the generation of direct jobs and on the average salary mass of the workforce of the beneficiary company.
Differences between INTEGRAR/RS and FUNDOPEM/RS:
- O FUNDOPEM/RS is a partial funding of the monthly incremental ICMS that must be returned in installments after the grace period.
- O INTEGRAR/RS is a reduction, as a percentage (established for each municipality) levied on each amortized portion of the financing FUNDOPEM/RS, including the financed principal and related charges.