Brazil Cost refers to the web of red-tape and related factors hampering productivity and is a key deterrent to those who do business in the country. This issue of LS Brazil Outlook discusses recent initiatives by the administration to address two causes of Brazil Cost.

Proposals sent to Congress alleviate high taxes and charges associated with the payroll; and create a framework for settling tax disputes. These changes were proposed by provisional measures, which require Congress approval. Investors often ask what happens to transactions entered under a provisional measure that fails to be approved; this question is clarified in this issue.

Finally, we also discuss the idea – reportedly under review by tax authorities – of fostering financing for infrastructure through specific tax incentives.

On this issue | December 2019

Employment law: additional changes aimed at reducing costs and red tape

Employment law: additional changes aimed at reducing costs and red tape

The administration sent a provisional measure to Congress in November with changes that reduce payroll charges for young workers, simplify payments under profit sharing plans and minimize taxation and bureaucracy.

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Brazilian provisional measures: what happens when Congress fails to approve them?

The permanence of provisional measures

Medidas provisórias (Provisional Measures) are submitted by the Executive and have the status of ordinary legislation until appreciated by Congress, which should happen in up to 120 days. Although this seems to create uncertainty the reality...

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New framework for settling tax disputes

Bold improvements to tax disputes

An initiative to reduce litigation and improve effectiveness of credit recovery could positively impact millions of taxpayers who have over $334 billions under dispute with tax authorities. It could also end procedures under review by the federal...

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Financing infrastructure: tax incentives would be welcome

Tax change to favor infrastructure

Authorities are discussing improvements to the tax treatment for long-term securities issued abroad by Brazilian companies. The measures could include a tax relief to interest and capital gains from infrastructure debentures, which would have...

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