Zero Tax for Young Entrepreneurs in Certain Cities

A new bill proposed in the Brazilian Chamber of Deputies aims to boost entrepreneurship among young people in cities with low Human Development Index (HDI) scores. The bill, known as Project of Law 2367/26, was authored by Deputy Silvio Antonio (MA) and creates the "Minha Empresa, Meu Futuro" (My Business, My Future) program.

## Requirements for Entrepreneurship

To be eligible for the tax incentive, the bill sets out clear rules focused on local impact and combating unemployment:

| Requirement | Description | | --- | --- | | Age | The business must be owned or majority-owned by a young person between 18 and 29 years old. | | Location | The company's headquarters and main operations must be located and registered in cities with an HDI-M score below the national average. | | Employment | The business must generate at least one formal direct job in addition to the owner's position. |

## Focus on Low-Income Regions

According to the Chamber of Deputies News Agency, the proposal is a direct response to regional inequalities faced by young people, particularly in states like Maranhão. Data from the Brazilian Institute of Geography and Statistics (IBGE) presented in the bill's justification shows that 43% of young people in Maranhão live in households with a per capita income of up to half the minimum wage. In contrast, only 12% of young entrepreneurs in the state operate in the formal market.

## Path to Approval

The bill is currently being analyzed by various committees in the Chamber of Deputies, including the Economic Development, Social Security, Finance and Taxation, and Constitution and Justice committees. To become law, the bill must be approved by both the Chamber of Deputies and the Federal Senate.