Government extends tax on loans and investments from abroad
JUSTIÇA DE SÃO PAULO DETERMINA QUE O MUNICIPIO AUTORIZE A EXPEDIÇÃO DE NOTAS FISCAIS ELETRÔNICAS.
9 de fevereiro de 2024
Por que Rússia deve crescer mais do que todos os países desenvolvidos, apesar de guerra e sanções, segundo o FMI
18 de abril de 2024The Brazilian government has sworn that it will impede an inflow of dollars from further harming the country’s exports and debilitating its manufacturing base.
The minister of Finance, Guido Mantega, is credited with coining the phrase, “exchange-rate wars,” in the context of the present international financial crisis. President Dilma Rousseff has called it a “monetary tsunami,” and vowed to do whatever is necessary to halt it. And she said it in the presence of Angela Merkel of Germany, last week.
Now Brasilia has ratcheted up its attack by implementing a further extension of the 6% tax on loans made abroad. On March 1, the government extended the tax timeline from two years to three years. And, as of yesterday, March 12, the timeline is extended to five years. In practical terms, this means that money borrowed abroad (at much lower interest rates than Brazilian interest rates) will have to remain in the country for five years or pay the 6% tax.
In a note, the Ministry of Finance described the new measure, that is, the new version of the (6%) Tax on Financial Operations (“IOF”), as having a “prudential character.” The note went on to say: “The measure seeks to reduce the flow of speculative capital that comes into Brazil to obtain gains from the difference in interest rates abroad and here.” In conclusion, the note says the measure is part of what the minister of Finance, Guido Mantega, promised on March 1, when he said that Brazil would restrict the entrance of short-term foreign capital investments.
JUSTIÇA DE SÃO PAULO DETERMINA QUE O MUNICIPIO AUTORIZE A EXPEDIÇÃO DE NOTAS FISCAIS ELETRÔNICAS.
9 de fevereiro de 2024Por que Rússia deve crescer mais do que todos os países desenvolvidos, apesar de guerra e sanções, segundo o FMI
18 de abril de 2024The Brazilian government has sworn that it will impede an inflow of dollars from further harming the country’s exports and debilitating its manufacturing base.
The minister of Finance, Guido Mantega, is credited with coining the phrase, “exchange-rate wars,” in the context of the present international financial crisis. President Dilma Rousseff has called it a “monetary tsunami,” and vowed to do whatever is necessary to halt it. And she said it in the presence of Angela Merkel of Germany, last week.
Now Brasilia has ratcheted up its attack by implementing a further extension of the 6% tax on loans made abroad. On March 1, the government extended the tax timeline from two years to three years. And, as of yesterday, March 12, the timeline is extended to five years. In practical terms, this means that money borrowed abroad (at much lower interest rates than Brazilian interest rates) will have to remain in the country for five years or pay the 6% tax.
In a note, the Ministry of Finance described the new measure, that is, the new version of the (6%) Tax on Financial Operations (“IOF”), as having a “prudential character.” The note went on to say: “The measure seeks to reduce the flow of speculative capital that comes into Brazil to obtain gains from the difference in interest rates abroad and here.” In conclusion, the note says the measure is part of what the minister of Finance, Guido Mantega, promised on March 1, when he said that Brazil would restrict the entrance of short-term foreign capital investments.