Despite suffering economic recession for three years in a row, this seems to be a promising decade for Brazil. So many things, including the 2014 world cup, Olympics games, and the discovery of petroleum in the oceanic pre-salt layer all happened this year. These developments have had a positive impact on the country. Many international corporations, investors and governments now want to invest in the country. Generally, the outlook is positive but it pokes wounds on the country’s federal government on how it can provide sufficient tax incentives/relief to create a favorable environment for businesses. The aim is to provide good tax incentives and reliefs but at the same time foster the economic, social and cultural development in the country. Maintaining a balance in all these demands is challenging for the Brazilian government.
But according to Flavio Maluf, the president of Eucatex, businesspeople and companies now have a reason to smile. The government recently presented the proposed Fiscal law Incentives. Through the proposed tax laws, companies now have an opportunity to choose where they spend their taxes. The law gives them an opportunity to choose a project in the areas of social, economic, science and research or cultural project that they can support.
Thus, instead of paying certain taxes directly to the government, companies can now channels the monies to these projects. The good thing is that the projects will bear the companies names thus helping them in building their public image. On the other hand, the government will benefit by encouraging development in the country.
However, Flavio Maluf continues to note that the new law doesn’t open a window for companies to avoid paying taxes. The government will closely monitor the projects that companies support and how they spend their money. Flavio Maluf also notes that companies can take advantage of other regional tax incentives depending on the areas where they operate.
About Flavio Maluf
Flavio Maluf is an influential Brazilian businessman who was born into a wealthy political family. He pursued a degree in mechanical engineering but his passion for entrepreneurship forced him to become a full-time businessman. He took over the leadership of the family owned business in 1997, and he currently serves as the president of Eucatex.
More information can be found by visiting: https://flaviomalufoficial.com/