Brazil

Details

  • Service: Tax, International Corporate Tax, Mergers and Acquisitions
  • Type: Regulatory update
  • Date: 4/3/2013

Tax News: 0% IOF/Credit Tax Rate – Infrastructure and Infrastructure-related Projects Financing 

Aiming at contributing to boost the investments in the infrastructure sector, the Brazilian Government issued Decree 7,975, on April 1st, 2013, which reduced to zero the IOF/Credit tax rate applied as of April 2nd, 2013, to local financing operations entered into with financial institutions for the purpose of financing the following transactions:

(i) acquisition, production and leasing of capital goods and associated working capital;

(ii) production of consumable assets for export purposes;

(iii) (electricity) power sector;

(iv) export structures of liquid bulks;

(v) engineering projects;

(vi) R&D projects;

(vii) investment projects associated with the creation of productive and technological capacity in sectors with high knowledge and engineering intensity; and

(viii) logistic infrastructure projects meant to be used for the construction of roads and railways, subject to concession by the Federal Government.



 

For more information, please contact a tax professional with KPMG in Brazil:

Marienne Coutinho, mmcoutinho@kpmg.com.br
Ericson Amaral, eamaral@kpmg.com.br
Murilo Mello, murilomello@kpmg.com.br
Roberto Haddad, robertohaddad@kpmg.com.br
Julio C. de Cepeda, jcepeda@kpmg.com.br
Fabiana Pereira, fvpereira@kpmg.com.br
Carlos Eduardo Toro, ctoro@kpmg.com.br
Valter Shimidu, vshimidu@kpmg.com.br
Cecilio Schiguematu, cschiguematu@kpmg.com.br
Marcus Vinícius Gonçalves, vslemenian@kpmg.com.br
Marcus Oliveira, moliveira@kpmg.com.br
Adriano Ponciano, ajponciano@kpmg.com.br

 

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