Category Taxation in Brazil

Taxes on E-Books Dropped in Brazil

March 14, 2017 Taxation in Brazil

tax on ebooksBRASILIA – Digital books and e-book readers in Brasil will soon be cheaper, as they have just received the same protection from taxation as physical books.

A new ruling by the Supreme Court of Brazil has enshrined the idea that digital books should enjoy the same tax treatment as their physical counterparts.

In September 2016 a debate began regarding the taxation of e-books, with some parties claiming that the digital products should not face taxation, while opponents claimed that the rules should be restricted to physical books only.

The tax breaks on books stems from legislation in Brazil which protects books from taxation as a matter of freedom of speech.

The Supreme Court has now ruled that the digital versions of books are practically indistinguishable from their physical versions, ...

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Brazil Cuts Subsidies and Spending

September 15, 2015 Taxation in Brazil

BRASILIA – The government of Brazil plans to significantly cut spending on housing, infrastructure and healthcare, while simultaneously cutting subsidies.

In a press conference held on September 14th the Planning Minister of Brazil Nelson Barbosa and the Finance Minister of Brazil Joaquim Levy jointly announced that the government would cut spending and tax breaks in order to help balance the national budget.

In order to reduce the levels of government spending, approximately 1 000 government employees would be fired, while the remaining staff would face salary freezes.

Further, 10 out of the country’s 37 ministries would be closed off, while expenditures on national housing programs, healthcare, broadband infrastructure, and sanitation would be reduced.

The government would also cut th...

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Brazil Launches Tax Debt Incentive Program

July 23, 2015 Taxation in Brazil

BRASILIA – Brazil will be offering companies the opportunity to pay off tax debts by trading in current tax credits.

On Jul 22nd the government of Brazil announced a new program allowing business to reduce their tax debts through tax credits.

Businesses which have outstanding tax debt will now have until September 30th to join a program whereby tax credits related to non-operating losses can be used to reduce taxes owed, instead of being cashed in.

The tax credits can be used to pay up to a maximum of 57 percent of the tax debt, with the remainder to be paid in cash.

It is currently estimated that as many as 29 000 companies will be eligible to take part in the program, potentially using up as much as BRL 860 billion in tax write credits.

The new measure is intended to help the governme...

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Brazil Loosing Billions in Illicit Financial Flows

September 8, 2014 Taxation in Brazil

BRASILIA – Illicit financial flows are on the rise in Brazil, as the country loses more and more every capital year to trade mis-pricing and hidden wire transfers.

On September 8th the independent think-tank Global Financial Integrity issued a new report, showing that in the years between 1960 and 2012 Brazil has seen more than USD 400 billion dollars in illicit financial flows.

The size of the illicit financial flows coming out of Brazil has increased progressively with time, rising from an average of USD 310 million per year in the 1960s, to USD 14.7 billion over the first decade following the turn of the century, finally jumping up to more than USD 33 billion in the last three years of the study.

According to the experts of the Global Financial Integrity, approximately 92...

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Brazil Cuts Tax on Foreign Loans

June 5, 2014 Taxation in Brazil

Tranaction tax in BrazilBRASILIA – The government of Brazil is cutting the tax obligations faced by business receiving foreign loans, opening the door to more financing opportunities, while helping address the problem of the falling value of the national currency.

In a statement issued on June 5th the Ministry of Finance of Brazil announced that in order to help stabilize value of the national currency and to help small business to obtain new financing and credit options, the currently enacted transaction tax on obtaining international loans would be scaled back to exclude short term loans.

The tax, locally referred to as the IOF, was previously applied at a rate of 6 percent on the value of any international loan with a maturity of longer than six month, however, the threshold has now been raised to one year.

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