Brazil Wants to Reduce Taxes for Foreigners Buying Stocks

Brazil’s Ministry of Finance is studying a proposal to grant certain tax exemptions to foreigners who invest in the Brazilian stock market.

According to the secretary of the National Treasury, Joaquim Levy, the taxes the Ministry has in mind are the income tax and the Provisional Contribution on Financial Transactions (CPMF, the "check tax").

Easing the tax burden on foreign investment would be a way to inject leverage into the country’s financial market, Levy believes. "The government is responsive; it is watching," he says.

One of the proposals under examination was submitted to the federal government at the end of last year by the National Association of Financial Market Institutions (ANDIMA).

An ANDIMA study suggests that reducing taxes on foreign investors could increase the amount invested in fixed-rate titles from the current level of US$ 4.57 billion (R$ 10 billion) to US$ 13.71 billion (R$ 30 billion).

At the time the proposal was presented to the National Treasury, the president of ANDIMA, Alfredo Moraes, stated that the goal is to encourage the participation of foreign investors in order to induce local investors to make longer-term investments and accept more fixed-rate titles.

In Levy’s opinion, Brazilian investors will not consider themselves discriminated against. "This [sort of treatment] is common in most of the world," he said.

He went on to explain, however, that the proposal is still being analyzed and the final word is still out.

The ANDIMA proposal would have foreign investors continue paying taxes at the current rate of 15% on investments of up to one year. The rate would decrease to as low as 0% for investments of more than two years.

Agência Brasil

Tags:

You May Also Like

Best Showing in 14 Years: UN Estimates Put Brazil Growth at 6% in 2008

Latin America's largest economy, that of Brazil, will likely end 2008 with an expansion ...

Piracy: In Brazil, If It Can Be Copied It Will Be

Brazil has always been the target of pirates, starting in the 16th century, when ...

Dollar Falls to a Three-Year Low in Brazil

Brazil’s currency, the real, surged to a three-year high against the US dollar after ...

‘Brazil Is Not Nuclear,’ Says Balloon Crisscrossing the Country

The environmental organization, Greenpeace, launched the campaign “Brazil is not nuclear” to protest plans ...

Brazil to Lure Tourists in 42 Fairs of 15 Countries in the Next 4 Months

The Brazilian Tourism Institute (Embratur) will promote Brazil as a travel destination in 42 ...

The Treacherous Songs of Brazil’s Lustful Sirens

Brazil can be a dangerous place for foreign dreamers. We have seen a good ...

Brazil Asks WTO for Sanctions Against US Subsidies

The Brazilian government sent a request, yesterday, July 5, to the World Trade Organization ...

Uruguay Leader Sees Dirty Tricks from Brazil and Argentina in Mercosur

For Uruguay's ruling coalition presidential candidate José Mujica, Mercosur is "lame and in misery," ...

Brazil May Have the Answers to Many Global Ecological and Social Ills

Brazil is a fantastic country, in an amazing part of the world. For many ...

To Protect Domestic Production China Bars Beef and Pork from Brazil

The Brazilian embassy in Beijing informed Brazil’s Ministry of Agriculture’s Department of International Relations that the ...

WordPress database error: [Table './brazzil3_live/wp_wfHits' is marked as crashed and last (automatic?) repair failed]
SHOW FULL COLUMNS FROM `wp_wfHits`