By: Leonardo Neri

Recently, Senator Izalci Lucas (PSDB/DF), with the support of the National Association of Data Privacy Professionals (“ANPPD”), proposed Bill No. 4 of 2022 (“PL 4/22”), which brought the opportunity to discuss the possibility of tax incentives for companies that invest and adhere to the adjustments and operationalizations regarding the General Data Protection Law (“LGPD”).

This text allows for changes to Laws 10.637/2002, 10.833/2003 and 10.865/2004, so that they allow tax incentives. It is worth mentioning that such incentives are related to PIS, PASEP, COFINS, PIS/PASEP – Import and COFINS- Import, therefore, if a company has implemented the LGPD, the incentives may be discounted from the calculation basis.

In view of this, it is clear that such a proposal is also an incentive for companies to adapt to the LGPD, because the cost of hiring specialized professionals can be quite high, thus, the granting of a tax benefit can be seen as an incentive for effective compliance.

Furthermore, the justifications for imposing PL 4/22 permeate the argument that “the legal impositions imposed by the LGPD have led companies to promote organizational restructuring in their managerial, operational and financial aspects, in order to adapt to the rules and normative principles that guide data protection and privacy and information security, whether in virtual or physical environments”.

Thus, “the adaptation of companies’ operational/administrative routines and protocols has become essential and relevant for the continuity of companies’ economic activities, as well as for the development of governance processes”. That said, the granting of the tax benefit is fully in line with the value chain of the National Data Protection Authority (“ANPD”), according to the Ministry of Economy’s Technical Guide for Strategic Management.

Finally, so far the demonstrations have been positive, with the majority of participants expressing their support for proposing the changes, as many consider them to be beneficial and encouraging.

For more information on the topic, as well as on investigations for compliance with the LGPD, contact the partner responsible for the data protection team, Leonardo Neri.

With the collaboration of Barbara Gomes