Doing business in Brazil can be difficult due to the high tax rates demanded by the Brazillian government. Because of this, businessman Flavio Maluf, the president of Eucatex, stresses the importance of mitigating these tax burdens with the use of tax incentives.
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Maluf explains that one of these incentives, the Fiscal Incentive Laws, was created to divert money paid in taxes to programs in a variety of sectors including sports, social, health, technology, and others. The point is that money can be used for the betterment of society instead of going directly to the government.
Flavio Maluf explains that companies will not have their required taxes lowered and still must pay the full amount but instead can make use of the money spent by allowing themselves with issues that can have a positive benefit on the perception of their company. If properly executed, these tax payments can actually become an integral part of a company’s advertising campaign.
In the country of Brazil, there are also incentives available to companies for doing business in certain regions of the company. The Manaus Free Zone was established in 1957 and is a great example of this point. The zone was established to support the development of the Western Amazon.
Another example Maluf cites tax incentives for businesses in Brazil is the incentives offered by the public administration to companies doing business in certain industries. These incentives can be granted in the form of tax reductions or exemptions, compensation, or other methods that helps companies afford to increase employment rolls in selected industries.
Finally, Flavio Maluf explains that incentive programs vary greatly from one state or municipality to another. Also, participation in tax incentive programs is based only on real profits and not profits that are presumed or anticipated.
About Flavio Maluf
Flavio Maluf began his working career with Eucatex in 1987 as part of their trade department. Maluf transferred to the industrial area of the company shortly after where he worked until 1996. In 1997, Flavio Maluf became President Eucatex with the approval of all involved and continues to work in this capacity to this day. Visit: https://flaviomalufoficial.com/