ANNOUNCEMENT 16 Sep 2014In September 2014, the government of Brazil announced a targeted tax change.
NUMBER OF INTERVENTIONS
Minist?rio de Fazendo. (2014). Mandega anuncia novas medidas de incentivo ? ind?stria. Available at http://www.fazenda.gov.br/divulgacao/noticias/2014-1/setembro/mantega-anuncia-novas-medidas-de-incentivo-a-industria
Dailymail. (2014). Brazil extends tax breaks for manufacturers ahead of election. Available at http://www.dailymail.co.uk/wires/reuters/article-2757125/Brazil-extends-tax-breaks-manufacturers-ahead-election.html?printingPage=true
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.