The economic team has intensified discussions around a proposal to reduce the Corporate Income Tax (IRPJ) as a way to follow the changes made in the US.
Finance Minister Eduardo Guardia told President Michel Temer that as soon as the model to compensate for the cut of this tax is ready he will present him with the proposed bill to be sent to Congress, say people familiar with the matter.
Showing posts with label Taxation. Show all posts
Showing posts with label Taxation. Show all posts
Tuesday, September 11, 2018
Thursday, August 30, 2018
Taxation of investment funds: the new intended regime
The Brazilian government again intends to change the taxation of investments in certain Brazilian funds, especially FIPs and closed-end funds, effective January 1st, 2019.
Similar changes had already been attempted via Provisional Measure (“PM”) No. 806, of October 30, 2017, which was not timely converted into law by Congress and thus expired. Now President Michel Temer has submitted a new bill to Congress (Bill No. 10,638/2018) with similar contents.
Closed-end funds, which currently are taxed only upon amortization or liquidation, would be subject to biannual Withholding Income Tax (“WHT”) collection, with past-accumulated gains being taxed at once, which may be challenged on Constitutional grounds.
Similar changes had already been attempted via Provisional Measure (“PM”) No. 806, of October 30, 2017, which was not timely converted into law by Congress and thus expired. Now President Michel Temer has submitted a new bill to Congress (Bill No. 10,638/2018) with similar contents.
Closed-end funds, which currently are taxed only upon amortization or liquidation, would be subject to biannual Withholding Income Tax (“WHT”) collection, with past-accumulated gains being taxed at once, which may be challenged on Constitutional grounds.
Wednesday, December 7, 2016
Refis - Brasília may open new installment program for corporate debt
Under pressure by businesspeople and parliamentarians to open a new installment program for the payment of companies’ debts to the federal government, Palácio do Planalto, the presidential seat, has sent a positive signal to Congress and should forward the measure within the set of initiatives under study for a faster recovery of economic growth and jobs, according to senior sources. Part of the government is sympathetic to the proposal since the measure would help take businesses out of the financial crisis and still boost revenues next year. The Planalto, however, is still studying whether the political climate is favorable to such measure. The government also faces strong resistance from the Secretariat of Federal Revenue, which believes the program encourages defaults and, in the long run, deteriorates the government's tax collection capacity.
valor.com.br
valor.com.br
Friday, March 5, 2010
Mantega Says Brazil Currency Situation Not ‘Ideal’
Mantega Says Brazil Currency Situation Not ‘Ideal’
March 5 (Bloomberg) -- Brazilian Finance Minister Guido Mantega said today the country’s currency situation isn’t “ideal,” signaling the government may step up interventions in the market as it seeks to temper the real’s gains.
“We have a relatively stable situation now,” Mantega said today in a speech from Sao Paulo. “It’s not an ideal situation. We haven’t resolved the competitiveness issue.”
March 5 (Bloomberg) -- Brazilian Finance Minister Guido Mantega said today the country’s currency situation isn’t “ideal,” signaling the government may step up interventions in the market as it seeks to temper the real’s gains.
“We have a relatively stable situation now,” Mantega said today in a speech from Sao Paulo. “It’s not an ideal situation. We haven’t resolved the competitiveness issue.”
Tuesday, November 10, 2009
Brazil Investigating Investment Tax Loopholes, Estado Reports
Nov. 10 (Bloomberg) -- Brazil’s Finance Ministry is investigating possible loopholes used by investors to avoid paying a new tax on foreign purchases of stocks and bonds, O Estado de Sao Paulo reported, citing an interview with a government official who declined to be identified.
The Finance Ministry is inclined to raise the tax rate from 2 percent and at the same time to eliminate the tax on purchases of stocks in initial public offerings, the person told Estado.
The Finance Ministry press office didn’t immediately return calls by Bloomberg News seeking comment.
To contact the reporter responsible for this story: Camila Fontana at cfontana@bloomberg.net
Last Updated: November 10, 2009 05:02 EST
Brazil Investigating Investment Tax Loopholes, Estado Reports - Bloomberg.com
The Finance Ministry is inclined to raise the tax rate from 2 percent and at the same time to eliminate the tax on purchases of stocks in initial public offerings, the person told Estado.
The Finance Ministry press office didn’t immediately return calls by Bloomberg News seeking comment.
To contact the reporter responsible for this story: Camila Fontana at cfontana@bloomberg.net
Last Updated: November 10, 2009 05:02 EST
Brazil Investigating Investment Tax Loopholes, Estado Reports - Bloomberg.com
Thursday, November 5, 2009
Mantega Says Brazil Inflow Tax to Help Avoid ‘Bubble’
By Laura Price and Juan Pablo Spinetto
Nov. 5 (Bloomberg) -- Brazilian Finance Minister Guido Mantega said the country’s 2 percent tax on some capital inflows will help prevent the formation of an asset “bubble.” [more: Mantega Says Brazil Inflow Tax to Help Avoid ‘Bubble’]
Nov. 5 (Bloomberg) -- Brazilian Finance Minister Guido Mantega said the country’s 2 percent tax on some capital inflows will help prevent the formation of an asset “bubble.” [more: Mantega Says Brazil Inflow Tax to Help Avoid ‘Bubble’]
Tuesday, November 3, 2009
Lula Says Brazil Assessing ‘Permanent Solution’ for Tax Cuts
Lula Says Brazil Assessing ‘Permanent Solution’ for Tax Cuts - Bloomberg.com:
By Iuri Dantas
Nov. 3 (Bloomberg) -- Brazilian President Luiz Inacio Lula da Silva said the Finance Ministry and the country’s consumer products manufacturers are discussing a “permanent solution” regarding tax cuts on home appliances.
The government is proceeding with “caution” as declining tax collection this year won’t be allowed to endanger “social programs and investment,” Lula said in his weekly newspaper column published on the presidency’s Web site.
“A more permanent solution is being discussed by the Finance Ministry” and industry representatives, Lula said. “Caution is needed.”
Finance Minister Guido Mantega on Oct. 29 announced that the government had decided to extend tax cuts on energy- efficient appliances for three months and might consider additional measures, without elaborating.
To contact the reporter on this story:’ Iuri Dantas in Brasilia at idantas@bloomberg.net
Last Updated: November 3, 2009 09:54 EST"
By Iuri Dantas
Nov. 3 (Bloomberg) -- Brazilian President Luiz Inacio Lula da Silva said the Finance Ministry and the country’s consumer products manufacturers are discussing a “permanent solution” regarding tax cuts on home appliances.
The government is proceeding with “caution” as declining tax collection this year won’t be allowed to endanger “social programs and investment,” Lula said in his weekly newspaper column published on the presidency’s Web site.
“A more permanent solution is being discussed by the Finance Ministry” and industry representatives, Lula said. “Caution is needed.”
Finance Minister Guido Mantega on Oct. 29 announced that the government had decided to extend tax cuts on energy- efficient appliances for three months and might consider additional measures, without elaborating.
To contact the reporter on this story:’ Iuri Dantas in Brasilia at idantas@bloomberg.net
Last Updated: November 3, 2009 09:54 EST"
Thursday, October 22, 2009
Brazil - A Quick Guide to the IOF Tax
IOF on Foreign Currency Inflows
Brazilian Finance Minister Guido Mantega announced last Monday that
capital inflows regarding portfolio investments and investments in local
assets will be subject to IOF taxation (at 2%, to be paid on the
settlement date of the BRL 'Reais'). This is the main channel used by
foreign investors to invest both in Equities and Fixed income in Brazil.
The IOF over FX transactions to buy any assets, through the Resolution
2689 was increased from 0% to 2%, regardless how long the investment
remains in Brazil (short or long term).
This is the first time the government imposes an IOF over investment in
equities. From March to October 2008, the IOF for fixed income was
subject to an IOF of 1.5% but for equities remained unchanged at 0%.
In other words:
- All Capital Inflows to Fixed income and Equity Investments are
subject to the IOF taxation at 2%.
- The IOF must be paid in the Foreign Exchange Transaction when
the foreign investor is Buying BRL in all transactions closed from
October 20 onward
(FX contracts closed until October 19 are exempt of the new IOF).
- The IOF tax must be applied on the gross up value, i.e. If you
traded BRL 1.000.000,00 at Bovespa so, the FX contract must be closed
for BRL 1.020.408,16 = BRL 1.000.000,00 / 0,98. Please always observe
this rule for the next FX transactions. See table below:
Amount Traded at BOVESPA
BRL 1.000.000,00
FX Amount to be Considered
BRL 1.020.408,16
IOF Tax on the FX contract
BRL 20.408,16
NET BRL Amount to be paid to local custodian
BRL 1.000.000,00
Calculation
BRL 1.000.000 (100%-2%) = Grossed up Amount = BRL 1.020.408,16 = FX
amount to be closed.
- Please take note that the event to be taxed is the FX contract and
the responsible to collect the IOF on the FX transactions is the Bank
where the FX deal is closed and not the local custodian."
Brazilian Finance Minister Guido Mantega announced last Monday that
capital inflows regarding portfolio investments and investments in local
assets will be subject to IOF taxation (at 2%, to be paid on the
settlement date of the BRL 'Reais'). This is the main channel used by
foreign investors to invest both in Equities and Fixed income in Brazil.
The IOF over FX transactions to buy any assets, through the Resolution
2689 was increased from 0% to 2%, regardless how long the investment
remains in Brazil (short or long term).
This is the first time the government imposes an IOF over investment in
equities. From March to October 2008, the IOF for fixed income was
subject to an IOF of 1.5% but for equities remained unchanged at 0%.
In other words:
- All Capital Inflows to Fixed income and Equity Investments are
subject to the IOF taxation at 2%.
- The IOF must be paid in the Foreign Exchange Transaction when
the foreign investor is Buying BRL in all transactions closed from
October 20 onward
(FX contracts closed until October 19 are exempt of the new IOF).
- The IOF tax must be applied on the gross up value, i.e. If you
traded BRL 1.000.000,00 at Bovespa so, the FX contract must be closed
for BRL 1.020.408,16 = BRL 1.000.000,00 / 0,98. Please always observe
this rule for the next FX transactions. See table below:
Amount Traded at BOVESPA
BRL 1.000.000,00
FX Amount to be Considered
BRL 1.020.408,16
IOF Tax on the FX contract
BRL 20.408,16
NET BRL Amount to be paid to local custodian
BRL 1.000.000,00
Calculation
BRL 1.000.000 (100%-2%) = Grossed up Amount = BRL 1.020.408,16 = FX
amount to be closed.
- Please take note that the event to be taxed is the FX contract and
the responsible to collect the IOF on the FX transactions is the Bank
where the FX deal is closed and not the local custodian."
Wednesday, October 21, 2009
BM&FBovespa to Propose Alternatives to ‘Faulty’ Tax - Bloomberg.com
By Paulo Winterstein
Oct. 21 (Bloomberg) -- BM&FBovespa SA, Latin America’s biggest exchange, plans to press the Brazilian government for alternative ways to curb gains in the currency as a tax on investments sent stocks to the biggest drop in four months.
The benchmark Bovespa index tumbled 2.9 percent yesterday after Finance Minister Guido Mantega announced a 2 percent tax on foreign purchases of fixed-income securities and equities. The levy, higher than a 1.5 percent tax scrapped a year ago that didn’t cover stocks, will hurt Brazilian investors and small- and medium-sized companies, according to Carlos Kawall, chief financial officer of Sao Paulo-based BM&FBovespa.
“We need to do everything we can from now on, talking to the government, getting support from everyone who sees that this is something that is definitely faulty and could be altered,” Kawall, a former Treasury Secretary who served under Mantega in 2006, said during a conference call yesterday.
International investors, who account for about a third of BM&FBovespa’s stock trading, will likely buy American depositary receipts, punishing smaller Brazilian companies who can’t afford the costs of listing overseas, Kawall said. The fact that money raised through ADRs is seen as direct investment and isn’t taxed, while local capital raising will be subject to the levy, is one of the “inconsistencies” in the regulation, he said."
BM&FBovespa to Propose Alternatives to ‘Faulty’ Tax - Bloomberg.com
Oct. 21 (Bloomberg) -- BM&FBovespa SA, Latin America’s biggest exchange, plans to press the Brazilian government for alternative ways to curb gains in the currency as a tax on investments sent stocks to the biggest drop in four months.
The benchmark Bovespa index tumbled 2.9 percent yesterday after Finance Minister Guido Mantega announced a 2 percent tax on foreign purchases of fixed-income securities and equities. The levy, higher than a 1.5 percent tax scrapped a year ago that didn’t cover stocks, will hurt Brazilian investors and small- and medium-sized companies, according to Carlos Kawall, chief financial officer of Sao Paulo-based BM&FBovespa.
“We need to do everything we can from now on, talking to the government, getting support from everyone who sees that this is something that is definitely faulty and could be altered,” Kawall, a former Treasury Secretary who served under Mantega in 2006, said during a conference call yesterday.
International investors, who account for about a third of BM&FBovespa’s stock trading, will likely buy American depositary receipts, punishing smaller Brazilian companies who can’t afford the costs of listing overseas, Kawall said. The fact that money raised through ADRs is seen as direct investment and isn’t taxed, while local capital raising will be subject to the levy, is one of the “inconsistencies” in the regulation, he said."
BM&FBovespa to Propose Alternatives to ‘Faulty’ Tax - Bloomberg.com
Monday, October 19, 2009
Brazil to Impose Tax on Foreign Inflows, Mantega Says (Update3) - Bloomberg.com
Brazil to Impose Tax on Foreign Inflows, Mantega Says (Update3) - Bloomberg.com
By Adriana Brasileiro and Andre Soliani
Oct. 19 (Bloomberg) -- Brazil will impose taxes on purchases by foreign investors of real-denominated, fixed-income securities and on purchases of stocks, Finance Minister Guido Mantega said.
The measures are being taken “to avoid an excess speculation in the stock market and in capital markets,” Mantega told reporters in Sao Paulo.
The real has gained 35 percent since the beginning of the year, the best performer amid the 16 most traded currencies tracked by Bloomberg. The currency has gained 5.3 percent in the past month.
The central bank started purchasing dollars on May 8 in a bid to temper the real gains. The currency weakened 0.5 percent to 1.7177 per U.S. dollar at 4:28 p.m. New York time.
Earlier today, the Brazilian real was cut to “underweight” from “overweight” in RBC Capital Markets’ model portfolio on concern the government would impose new taxes.
Today’s announcement reverses last year’s decision to end such taxes. In October 2008, President Luiz Inacio Lula da Silva eliminated a tax, known locally as IOF, of 1.5 percent on foreign investments in certain financial products and of 0.38 percent on foreign-currency loans.
“Excess global liquidity could lead to an over-appreciation of the real,” Mantega said. That would threaten to hurt the country’s exporters and further fuel demand for imports.
Foreign investor will pay a 2 percent tax when they enter the country to buy stocks or fixed-income securities.
In the short term, the measure may help keep the real above 1.7 per U.S. dollar, said Antonio Madeira, chief economist at MCM Consultores Associados Ltd. As the market creates new investment strategies to bypass the tax, the impact in the currency market will be lost, he said.
Mantega said the measures may not lead the real to weaken, but are designed to slow its appreciation and prevent the creation of bubbles in Brazilian markets. “These are to prevent excesses,” he said." ....
By Adriana Brasileiro and Andre Soliani
Oct. 19 (Bloomberg) -- Brazil will impose taxes on purchases by foreign investors of real-denominated, fixed-income securities and on purchases of stocks, Finance Minister Guido Mantega said.
The measures are being taken “to avoid an excess speculation in the stock market and in capital markets,” Mantega told reporters in Sao Paulo.
The real has gained 35 percent since the beginning of the year, the best performer amid the 16 most traded currencies tracked by Bloomberg. The currency has gained 5.3 percent in the past month.
The central bank started purchasing dollars on May 8 in a bid to temper the real gains. The currency weakened 0.5 percent to 1.7177 per U.S. dollar at 4:28 p.m. New York time.
Earlier today, the Brazilian real was cut to “underweight” from “overweight” in RBC Capital Markets’ model portfolio on concern the government would impose new taxes.
Today’s announcement reverses last year’s decision to end such taxes. In October 2008, President Luiz Inacio Lula da Silva eliminated a tax, known locally as IOF, of 1.5 percent on foreign investments in certain financial products and of 0.38 percent on foreign-currency loans.
“Excess global liquidity could lead to an over-appreciation of the real,” Mantega said. That would threaten to hurt the country’s exporters and further fuel demand for imports.
Foreign investor will pay a 2 percent tax when they enter the country to buy stocks or fixed-income securities.
In the short term, the measure may help keep the real above 1.7 per U.S. dollar, said Antonio Madeira, chief economist at MCM Consultores Associados Ltd. As the market creates new investment strategies to bypass the tax, the impact in the currency market will be lost, he said.
Mantega said the measures may not lead the real to weaken, but are designed to slow its appreciation and prevent the creation of bubbles in Brazilian markets. “These are to prevent excesses,” he said." ....
Governo taxa capital estrangeiro em 2% para conter valorização do real frente ao dólar - O Globo
Governo taxa capital estrangeiro em 2% para conter valorização do real frente ao dólar - O Globo
Plantão | Publicada em 19/10/2009 às 19h02m
SÃO PAULO - O ministro da Fazenda, Guido Mantega, anunciou nesta segunda-feira que o governo vai criar uma aliquota de 2% do IOF para taxar o ingresso do capital estrangeiro. A medida passa a vigorar nesta terça-feira. A partir desta data, todo o capital estrangeiro que entrar no país para aplicações em bolsa ou em renda fixa e variável terá que pagar uma taxa de 2%.
Segundo o ministro Mantega, a medida tem por objetivo frear a especulação com o dólar e a valorização do Real.
- A medida é para evitar que haja excesso de especulação na bolsa e no mercado financeiro. O Brasil se tornou um país forte atrativo para o mercado internacional e como há um excesso de capital no mundo, temos que evitar a especulação no país - disse Mantega.
Desde o começo do ano, já entrou no país algo em torno de US$ 20 bilhões e tem dias que entram até US$ 5 bilhões. Com o início dos projetos do pré-sal, o governo acredita que a entrada de recursos pode aumentar muito mais, supervalorizando o real frente ao dólar e, com isso, prejudicar as exportações e facilitar as importações.
- Queremos impedir o excesso de valorização do real. Essa valorização prejudica as exportações brasileiras e barateia as importações - esclareceu o ministro, em entrevista concedida em São Paulo."
Plantão | Publicada em 19/10/2009 às 19h02m
SÃO PAULO - O ministro da Fazenda, Guido Mantega, anunciou nesta segunda-feira que o governo vai criar uma aliquota de 2% do IOF para taxar o ingresso do capital estrangeiro. A medida passa a vigorar nesta terça-feira. A partir desta data, todo o capital estrangeiro que entrar no país para aplicações em bolsa ou em renda fixa e variável terá que pagar uma taxa de 2%.
Segundo o ministro Mantega, a medida tem por objetivo frear a especulação com o dólar e a valorização do Real.
- A medida é para evitar que haja excesso de especulação na bolsa e no mercado financeiro. O Brasil se tornou um país forte atrativo para o mercado internacional e como há um excesso de capital no mundo, temos que evitar a especulação no país - disse Mantega.
Desde o começo do ano, já entrou no país algo em torno de US$ 20 bilhões e tem dias que entram até US$ 5 bilhões. Com o início dos projetos do pré-sal, o governo acredita que a entrada de recursos pode aumentar muito mais, supervalorizando o real frente ao dólar e, com isso, prejudicar as exportações e facilitar as importações.
- Queremos impedir o excesso de valorização do real. Essa valorização prejudica as exportações brasileiras e barateia as importações - esclareceu o ministro, em entrevista concedida em São Paulo."
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