Problems relating to Trade and Investment on Brazil
6. Reduction and elimination of preferential policies for foreign capital |
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Issue |
Issue details |
Requests |
Reference |
| (1) Lack of Continuity on Tax Incentive Scheme | - While a Member Firm operates under Preferential Tax Measures (PTM) on certain specified products, PTM is available only for a limited period without guarantee for continuation. A Member Firm is unable to set up a long-term business plan. | - It is requested that GOB formalizes PTM by revision of the governing laws, instead of making available such measures in a haphazard manner. | |
| (Action) - On 30 December 2015, GOB promulgated Decree 13241 "Grid Act" that provides incentives to IT and software industries and resurrects PIS/PASEP/COFINS levy upon retailers' sales to consumers of smartphones, tablet terminals, personal computers and related products to consumers. The tax levy has started since 31 December 2015. |
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