IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Oct 2014 | Removal date: open ended
Still in force

Tax or social insurance relief

On 16 September 2014, the Brazilian finance minister Guido Mantega announced that the government is planning to extend a tax break to Brazilian manufacturing companies who are also active outside the country. Concretely, all Brazilian companies active outside of Brazil will be eligible to a 9% tax reduction on the earnings from their foreign subsidiaries. Prior to the change, only Brazilian food and beverage, construction and services companies benefited from the scheme.
 
The measure is supposed to increase the competitiveness of the Brazilian economy abroad and takes effect in October 2014.
 
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.

AFFECTED COUNTRIES

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