Law 6.979/2015: an analysis of the relationship between the tax benefit and formalemployment in the south-central region of Rio de Janeiro state (2018–2023)

Abstract

Tax incentives are frequently used as economic policy instruments to stimulate investment and promote regional development. In this context, Law No. 6,979/2015 established a differentiated tax treatment for industrial establishments located in selected municipalities in the State of Rio de Janeiro. This study examines the relationship between participation in this tax incentive program, corporate tax regimes, and the dynamics of formal employment in the Centro-Sul Fluminense region between 2018 and 2023. The analysis uses secondary data from JR Contabilidade’s client portfolio and employs a first-difference estimator to investigate associations among the number of employees, corporate tax regimes, and ICMS tax relief. The findings indicate a limited association between the tax incentive and employment variation among the firms analyzed.