Brazil’s Fiscal Incentive Laws, says the Brazilian businessman Flavio Maluf, was enacted for the purpose of encouraging entrepreneurs to do business in Brazil, while also promoting the economic and social development of the country. The enactment of the Fiscal Incentive Laws was intended to counteract to some degree the fact that Brazil is ranked number three in corporate income tax rate, which is a whopping 34 percent. Only the United Arab Emirates and India have a higher corporate income tax rate than Brazil, 55 percent and 35 percent, respectively. Brazil’s high corporate income tax rate makes it difficult for some entrepreneurs to maintain a “live” business in Brazil. But, there are several ways in which companies can receive tax incentives. Find out more about how Flavio reports on and supports the Brazilian economy at barbacenaonline.com
Companies could sponsor development projects in the following fields: sports, cultural, health, social, technological, or scientific research. By sponsoring development projects, companies not only pay less taxes to the government while promoting social interests and development, but also develop a positive company image, greater name recognition, and save on advertising. Companies can also benefit from regional tax incentives, the purpose of which is to promote the business settlement of certain regions. The most famous regional tax incentive is that of the Manaus Free Zone, whose purpose is to promote the development of the Western Amazon. Companies may also receive tax reduction, exemption, and/or compensation if their business operations lie within certain sectors that are being deliberately stimulated to encourage growth.
Flavio Maluf is both the President and the Chief Executive Officer of the Euxcatex Group, which was founded in 1951. The Euxcatex Group primarily produces a large number of items used exclusively for the construction of homes. These products are exported to roughly 40 countries throughout the world. Products such as panels, doors, insulation, flooring, plastic and plant-based lining, wood varnish, paint, among others.