Brazil – New industrial policy launched, includes tax breaks on exports
According to a release from Brazil’s government (August 9, 2011), a new industrial, technological, service and foreign trade policy has been outlined for Brazil. The new measures are to reduce the 20% welfare tax to zero (0%) for sectors that are sensitive to the exchange rate and international competition and which are labor intensive—such as, apparel, footwear, furniture and software.
In addition to payroll tax breaks, the new program (known in English as “Greater Brazil”) establishes a series of initial action ranging from tax breaks on exports, the creation of Reintegra(which pays back to manufactured goods exporters 3% of their export revenue along the same lines as an income tax rebate), to approval of the government purchasing law, the strengthening of commercial defenses, and the creation of special low tax rates for different sectors.
In addition, the industrial policy makes the National Economic and Social Development Bank (BNDES) responsible for financing innovation and investment. One of the main measures in this area is a R$ 2 billion credit line to expand the bank’s innovation portfolio.
The overall strategic guidelines for the Greater Brazil plan and other new measures are expected to be announced in the next few days.
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Richard Meijer
What I am doing: Besides running a privately hold real estate business I am blogging om MasterclassBrazil.com. MasterClass Brazil was set up to provide a one-stop source of deep-knowledge for the growing foreign business community in Brazil.
Why: Having been in Brazil for around 20 years, I have seen many big companies, expats and individuals failing miserably. I have burned myself once in Brazil, setting up ProgressOil, a company focused on the supply of Brazilian castor oil. I am now running a privately hold real estate business in Brazil.
From all these experiences I have learned a lot. Despite the fact that I speak the language reasonable well, have a strong network and understand the do's and don'ts better, I am absolutely not saying I am an expert or specialist. Everyday I am learning new things and I believe Brazil is changing in such a rapid pace that the only way to survive in Brazil is to generously absorb and understand the information available to you.
From my experience I have learned that there is a lot of information, facts and data about Brazil. I have set up MasterClassBrazil to structure this information so you can turn it in true knowledge, enabling you to be successful in your endeavors.
There is nothing in the world so rewarding as sharing expertise and knowledge.
Richard Meijer
