CONTINUEThis site uses cookies. By continuing to browse this site you are agreeing to our use of cookies. Find out more.
  1. Front Page
  2. News By Topic
  3. Brazil To Slash Tax Burden In 2013

Brazil To Slash Tax Burden In 2013

by Mike Godfrey, Tax-News.com, Washington

31 December 2012


Brazilian Finance Minister, Guido Mantega has announced that the government will introduce tax cuts worth USD20bn in 2013 on the back of lower debt financing costs.

The plans involve making temporary industrial profits tax (IPI) breaks permanent, including those in place for household appliances. In addition, an adjustment to the methodology for calculating social security contributions will reduce the labor tax burden on companies.

Although IPI will be reintroduced on the sales of automobiles it will be reinstated at a reduced rate to cushion the impact of the removal of IPI exemptions granted to the sector throughout 2012, which are due to expire at the end of the year following two extensions.

Mantega also confirmed that the government would proceed with proposals to reform the regional sales tax, ICMS. Earlier this month the Minister announced that the government was proposing to harmonize states sales tax rates of Brazil's 26 states, and make the complex Brazilian tax regime less onerous. Over the next eight years, the government intends to reduce the autonomy of provincial authorities in respect of setting ICMS rates, and instead limit states to a 4% sales tax rate.

TAGS: tax | business | sales tax | corporation tax | manufacturing | tax rates | social security | Brazil | tax breaks

To see today's news, click here.

 















Tax-News Reviews

Cyprus Review

A review and forecast of Cyprus's international business, legal and investment climate.

Visit Cyprus Review »

Malta Review

A review and forecast of Malta's international business, legal and investment climate.

Visit Malta Review »

Jersey Review

A review and forecast of Jersey's international business, legal and investment climate.

Visit Jersey Review »

Budget Review

A review of the latest budget news and government financial statements from around the world.

Visit Budget Review »



Stay Updated

Please enter your email address to join the Tax-News.com mailing list. View previous newsletters.

By subscribing to our newsletter service, you agree to our Terms and Conditions and Privacy Policy.


To manage your mailing list preferences, please click here »