A recent Federal Law provides for:
- An extension to paternity/adoption leave: companies enrolled in the recent “Corporate Citizen Program” will be able to grant 15 additional leave days on top of the regular 5 leave days (ie. a total of 20 leave days) to male employees who (i) apply for an extension within 2 days from the birth/placement and (ii) provide evidence of participation in a paternity orientation program or equivalent activity.
- Deduction of income tax: companies who are under the "actual profit" regime (Lucro Real) can deduct compensation paid to an employee relating to a paternity/adoption extension leave period from the income tax owed to the Federal Revenue.
This extension of paternity/adoption leave is subject to the making of a further regulation authorizing its tax income impact on the government budget.