Category Archive: Brazil knowledge

Jun 17

Brazil didn’t fix inflation and now it’s paying the price

Protests in Brazil

High inflation, poor investment in education, healthcare and corruption leads to massive protests

Brazil didn’t fix inflation and now it’s paying the price

  • IOF TAX cut from 6% to 0%
  • Inflation hitting the ceiling of central bank’s 6.5%
  • US$ hits R$ 2.166
  • Lacklust GDP growth by just 0.6% in the first quarter
  • Third round of dollar-selling intervention by the Brazilian central bank

Brazil cuts its IOF tax, a federal tax on financial operations that levied 6% on fixed-income investments 

Finance Minister Guido Mantega announced late Tuesday that Brazil was reducing the IOF financial transactions tax on fixed-income investments to 0% from 6%, removing a barrier implemented to stem so-called “hot money” inflows. The U.S. dollar has rallied in recent weeks amid talk that the Federal Reserve would curtail its asset-buying program known as “quantitative easing.” The changing global scenario now makes the tax unnecessary, Mr. Mantega said.

“This is a long-term measure–it’s not for an immediate effect,” Mr. Mantega said, speaking to reporters outside the ministry. “We want to leave investors free to invest in fixed-income and Brazilian government securities.”

Selic raised to 8%

Brazil’s central bank over the past two months as part of its effort to fight inflation raised the country’s base Selic interest rate by three-quarters of a percentage point to 8.0%.

 

 

 

 

Feb 12

Apple to lose iPhone trademark in Brazil-source | Reuters

Apple to lose iPhone trademark in Brazil-source | Reuters.

RIO DE JANEIRO | Tue Feb 5, 2013 4:21pm EST

Apple to lose iPhone trademark in Brazil-source | Reuters

5 (Reuters) – Brazil’s copyright regulator will stripof the right to use its iPhone trademark in Latin America’s biggest market and granted the trademark to a local company that registered it first, a source familiar with the decision said on Tuesday.

Link

Exploiting generous benefits and loopholes, some public sector employees are earning more than $260,000 in a year.

Dec 14

Brazilian Ebooks: Cheaper, but Not as Cheap as Expected

Kindle for sale in Brazil at R$299

Kindle for sale in Brazil at R$299

Publisher fear cheap e-books

They’re finally here: Amazon, Kobo and Google have joined veterans Saraiva, Buqui, Gato Sabido and others in Brazil’s digital publishing market. But all that journalists, consumers and publishers wanted to talk about was the price of ebooks on sale. They noted, with much chagrin, that while Brazilian ebooks are cheaper, they are not as cheap as expected.  Read the rest of this entry »

Dec 04

Remittances from Brazil with Bitcoin and Save Huge!

Step-by-step guide for remittances from Brazil

Bitcoin, the engine for remittances

Bitcoin, the engine for remittances

Making a remittance from and to Brazil is not as easy as compared to many other countries. It is a very cumbersome process, often surrounded by a lot of red tape, incompetent and uninterested banks, high fees and very unattractive exchange rates.

This guide will detail step-by-step on how to set up your own Bitcoin bank, transfer the funds you have in your bank to anywhere in the world in about an hour and at a very low-cost.

What is Bitcoin

Bitcoins are a digital token or commodity accepted by groups or people in exchange for services. Bitcoin is the world’s first decentralized means of wealth transfer and as such, incorruptible. The prolific implications of this new technology are astounding.

Bitcoin is still an experimental new digital currency that enables instant payments to anyone, anywhere in the world. Bitcoin uses peer-to-peer technology to work with no central authority: managing transactions and issuing money are carried out collectively by the network. Bitcoin is also the name of the open source software which enables the use of this currency.

Q. What is Bitcoin?

A. Bitcoin is a peer-to-peer currency. Peer-to-peer means that no central authority issues new money or tracks transactions. These tasks are managed collectively by the network.

Bitcoin offers many advantages over traditional and other electronic currencies. Nobody owns or controls the Bitcoin economy. Utilising an ingenious decentralized structure, Bitcoin relies on cryptography and mathematics to make sure security and reliability. It is secure, reliable and eliminates almost all overhead seen in traditional banking.

Why?

  • Bitcoins are sent easily through the Internet, without needing to trust any third-party.
  • Transactions:
    • Are irreversible by design
    • Are fast. Funds received are available for spending within minutes.
    • Cost very little, especially compared to other payment networks.
  • The supply of Bitcoins is regulated by software and the agreement of users of the system and cannot be manipulated by any government, bank, organization or individual. The limited inflation of the Bitcoin system’s money supply is distributed evenly (by CPU power) to miners who help secure the network.

Is it legal?

This is a very good question, and to be honest I don’t know. I am neither a lawyer nor a judge, so I won’t give you any legal advise here. I would welcome any insight from Brazilian lawyers on this subject.

The only intention of this guide is to show you a method on how somebody could make a remittance at very low costs and almost instantaneously. The only thing I am 100% sure of is that Bitcoin is an extreme disruptive technology, which has the potential to fundamentally change the current worldwide corrupt financial system. There will be no place for the MoneyGrams and WesternUnions of this world.

More information

One of the best sources to start with is with the Bitcoin Wiki.  A wealth of information in many languages can be found at this wiki. If you would like to dive a bit deeper have a look at this Bitcoin forum.

Have great fun with the Step-by-step guide for remittances from Brazil

Step by step guide

 

Step 1) Open an account at one of the larger Bitcoin exchanges: Mt.Gox or Intersango;

Step 2) Open an account at MercadoBitcoin, or buy your Bitcoins at a cash exchanger at localbitcoins; The following steps only refer to MercadoBitcoin and Mt Gox

Step 3) Verify your Mt.Gox account and MercadoBitcoin account by scanning and sending a photo ID and utility bill. This may take a business day or two, but will not have to be repeated for future transactions;

Step 4) Deposit your Brazilian Reais on the bank account of MercadoBitcoin. Detailed instructions will be sent to you;

Step 5) Once the funds are added to your MercadoBitcoin account, buy Bitcoins by clicking “comprar” and entering your order. You will be charged 0.65%;

Step 6) Using the withdrawal (Retirado) page on MercadoBitcoin, send the Bitcoins you bought to your Bitcoin address on Mt Gox (this will take about an hour to complete, as the Bitcoin network verifies the transaction;

Step 7) Sell your Bitcoins on MtGox for US$, Swiss Francs,Yen or Euro. You will be charged between 0.4 and 0.6%;

Step 8) Withdraw your position using either vouchers, bank transfers, transfer for free your Bitcoins to your own localbitcoins cash exchanger . Withdraw fees vary by method.

Done.

Of course there are many varieties on the above guide. I really hope this information has value to you. If you believe it has something new to you, something which you haven’t heard from before and will bring you a bit more freedom, I will appreciate if you make a small donation to keep this voluntary blog up and running.

 

 

 

 

 

 

 

 

Warning!

Bitcoins do hold a value. Keep them safe. Holding huge amounts on your Bitcoin wallet is just not smart. Loosing your PC or iPhone with your wallet means most likely you have lost your Bitcoins as well. Secure your wallet and your PC.

Walking in Brazil with large amounts of cash is extremely risky. Even the Central Bank is not immune to bank robbery. Just don’t do it. Use electronic bank transfers instead. If you work with localbitcoins make sure you build a trusted relationship with your seller of Bitcoins.

Don’t spend more on exchanges as you can afford to lose. Think about your kids, your husband or man.

 

 

Legal disclaimer

MasterclassBrazil DOES NOT GIVE LEGAL OPINIONS

MasterclassBrazil contains articles on many legal topics; however, no warranty whatsoever is made that any of the articles are accurate. There is absolutely no assurance that any statement contained in an article touching on legal matters is true, correct or precise. Law varies from place to place and it evolves over time—sometimes quite quickly. Even if a statement made about the law is accurate, it may only be accurate in the jurisdiction of the person posting the information; as well, the law may have changed, been modified or overturned by subsequent development since the entry was made on MasterclassBrazil.

The legal information provided on MasterclassBrazil is, at best, of a general nature and cannot substitute for the advice of a licensed professional, i.e., by a competent authority with specialised knowledge who can apply it to the particular circumstances of your case. Please contact a local bar association, law society or similar association of jurists in your legal jurisdiction to obtain a referral to a competent legal professional if you do not have other means of contacting an attorney-at-law, lawyer, civil law notary, barrister or solicitor.

Neither the individual contributors, system operators, developers, nor sponsors of Wikipedia nor anyone else connected to Wikipedia can take any responsibility for the results or consequences of any attempt to use or adopt any of the information or disinformation presented on this web site.

Nothing on MasterclassBrazil  should be construed as an attempt to offer or render a legal opinion or otherwise engage in the practice of law.

Sep 25

Brazilian judge orders a statewide, 24-hour suspension of Google and its video sharing web site

A regional judge has ordered the arrest of Google’s president in Brazil, Fabio Jose Silva Coelho, after the company failed to take down YouTube videos.

Judge ordered a statewide, 24-hour suspension of Google and its video sharing web site YouTube

Judge ordered a statewide, 24-hour suspension of Google and its video sharing web site YouTube

Authorities say the videos are slanderous towards a candidate running in a city’s election for mayor. The judge ordered the removal of the videos last week, but Google has refused to remove them and says it is appealing.

It says it is not responsible for the content posted on its site.

According to Brazilian media, the videos in question suggest Alcides Bernal – a mayoral candidate in the city of Campo Grande – is guilty of committing crimes.

Judge Flavio Peren, who sits at a regional electoral court in Mato Grosso do Sul state, ruled the videos violated local election laws.

But his order for the videos to be removed was ignored and on Monday he ordered the arrest of Mr Coelho.

“Google is appealing the decision that ordered the removal of the video on YouTube because, as a platform, Google is not responsible for the content posted to its site,” the company said through a spokesman in Brazil.

It has previously argued that the internet should be a space for voters freely to express their opinions about candidates for political office.

But Google’s responsibility for the content it disseminates has recently come into question in other contexts, such as the case of the anti-Islam video that sparked protests around the Muslim world, say correspondents.

 

Jun 15

IOF Taxes exempted from loans

Six percent IOF tax exempted from foreign loans

Dilma Rousseff

Dilma Rousseff

The Brazilian administration is rolling back curbs on foreign capital imposed in the past 19 months after the real posted the biggest loss of any major currency this year.

The government exempted foreign loans which matures in more than than two years from a 6 percent tax to help companies and banks rollover debt, said Finance Minister Guido Mantega. The financial transaction tax was before charged on loans taken abroad maturing as many as five years.

The tax was one of a series of measures taken to weaken the real and protect exporters from what Rousseff dubbed “a monetary tsunami” unleashed by rich nations seeking to devalue their currencies. Mantega said today that the “excessive liquidity” that led to capital controls ended with the worsening of the European debt crisis.

“Before the crisis worsened, it was easier to have access to long-term credit,” Mantega told reporters in Brasília. Brazilian banks and companies “need to rollover loans taken in the past, and this makes it easier.”

After being the best performing major currency in the first two months of the year, the real reversed course and plunged, raising concern the move could stoke inflation as imports became more expensive.

Growth Forecasts and GDP review

Economists covering the Brazilian economy reduced their 2012 economic growth forecast for a fifth straight week on June 8. The world’s biggest emerging market after China will expand 2.53 percent this year, less than the 2.73 percent growth rate posted last year, according to the median estimate in a central bank survey of about 100 analysts. GDP Preview: The IBC-BR recorded a high of 0.22% in April compared to March, which means that the economy is growing again. The above data was reviewed. In March, a drop was 0.61%, in February, up 0.56% and in January, down 0.38%.

New stimulus package

Government announced a further package - The government today announced a line of credit to the states, through BNDES, which can reach $ 20 billion. Expectations are that the new credit lines increase investment to stimulate the economy.

Jun 15

Public-sector pay in Brazil: Shaming the unshameable | The Economist

 

How the bureaucrats rob the taxpayers

How the bureaucrats rob the taxpayers

Public-sector pay in Brazil: Shaming the unshameable | The Economist

When his time as São Paulo’s mayor finishes at the end of the year, jokes Gilberto Kassab, he will look for work in the garages of the city’s municipal assembly. This month the city’s legislature published, for the first time, the salaries of some of its 2,000 employees. Half the 700 people named, paulistanos were surprised to learn, take home more each month than the assembly’s chairman, who earns 7,223 reais ($3,508) after tax.

Jun 15

House of Representatives approves purchase of agricultural land by foreigners

Agriculture Committee of the House of Representatives approves purchase of agricultural land by foreigners

The Agriculture Committee of the House of Representatives approved on Wednesday (13th of June 2012) the text of the bill that allows the acquisition of large plots of land by Brazilian companies controlled by foreigners. Today, the actual limit is up to 100 “fiscal units” (módulos ficais).

Fiscal unit is a unit of land measurement used in Brazil. It is expressed in hectares and is variable and is determined for each municipality, taking into account:

  • main type of farming in the municipality;
  • proceeds from the exploitation prevalent;
  • other farms in the municipality which, although not predominant, are expressive function of income or area used;
  • concept of family property.

Today, by law, foreign companies can buy up to 5 000 hectares, never exceeding 25% of the municipal area of the location of the farm. Citizens of the same foreign nationality can not together have more than 10% of the area of a municipality.

The text proposes that Brazilian companies with foreign capital are treated as domestic companies, no limit for land acquisition. The companies and foreign people, who currently limit the acquisition of 100 and 50 fiscal modules, respectively, can now acquire up to one quarter of the municipality where the farm.

The proposal also eliminates the authorization or license from the National Institute of Colonization and Agrarian Reform (Incra) for acquisition by foreigners of rural property tax of up to four modules and rental tax of up to ten modules. The legislation established the current limit of three modules operating indefinitely.

Non-governmental organizations

The acquisition of land by non-governmental organizations (NGO’s) with foreign capital or headquarters outside of Brazil, which is not mentioned in current law, is prohibited in the new proposal. Upon approval, the report will be turned into a bill and distributed to other committees for analysis, then, be voted on in Congress.

Apr 13

Facebook Blasts into Top Position

Facebook Blasts into Top Position in Brazilian Social Networking Market Following Year of Tremendous Growth – comScore, Inc.

Facebook Brazil

Facebook Brazil

São Paulo, Brazil, January 17, 2012 – comScore, Inc. (NASDAQ: SCOR), a leader in measuring the digital world, today released data showing that Facebook assumed the top place in the Brazilian social networking market following a year of exceptional growth. In December 2011, Facebook.com attracted 36.1 million visitors – representing an increase of 192 percent in the past twelve months – to surpass Orkut as the leading social networking destination in the market.

“Facebook’s rapid ascent in the Brazilian market has certainly been one of the most interesting stories to develop during the course of 2011,” said Alex Banks, comScore managing director for Brazil. “Brazil has always been a particularly social market and now owns the fifth largest social networking population in the world. But despite the cultural affinity for social media, Facebook adoption had traditionally lagged in the market. That has all changed in the past year, during which the site has tripled in audience size as engagement has grown sevenfold to assume the leadership position in the market.”

Facebook.com, Orkut and Windows Live Profile Lead Social Networking Rankings

Results from the recent comScore study It’s a Social World revealed that Brazil was one of just seven markets (including China, Japan, South Korea, Vietnam, Poland and Russia) where Facebook did not lead the local social networking class according to October 2011 data.

In December 2011, however, Facebook.com finally secured the top place in Brazil’s social networking ranking with 36.1 million visitors age 6 and older accessing the site from a home or work computer, nearly tripling in audience size in the past year. Orkut, which fell to the #2 place with 34.4 million visitors, still managed to grow its audience 5 percent in the past year despite Facebook’s growing prominence. Windows Live Profile ranked third with 13.3 million visitors (up 13 percent), while Twitter.com ranked fourth with 12.5 million visitors (up 40 percent).

 

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