Brazil Examines Reducing Taxes for Foreign Investors

According to anba: The 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). 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.” 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).