New law promotes machinery and equipment renewal through special accelerated depreciation

Aiming at promoting the modernization and competitiveness of Brazilian industries, the Federal Government has enacted Law No. 14,871/2024. The statute grants special accelerated depreciation for new machinery and equipment intended to be added to a company’s fixed assets.

In accounting, depreciation accounts for the natural wear and tear of operating assets, resulting in a decrease in their useful life and value over time. Under current legislation, companies are allowed to deduct 10% of the value of these assets annually over ten years.

Thus, the Executive Branch can now authorize accelerated depreciation for machinery, equipment and devices acquired up to December 31, 2025. 

Companies will be able to deduct 50% of the asset's value from their Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL) in the year the asset is installed or starts operating, with the remaining 50% deductible in the following year.

The specific sectors and activities eligible for this benefit will be further detailed by decree. However, it should be noted that special depreciation deductions will not apply to buildings, land, works of art, forestry projects, or other assets that increase in value over time.