This preview shows page 1. Sign up to view the full content.
Unformatted text preview: s. Any company properly registered under Brazilian laws may acquire real
estate essentially without any limitations.
Despite a considerable list of bureaucratic requirements and complex tax and
labour codes, normally no significant obstacles are encountered for running a
business in Brazil. However, special attention must be given to those activities
or situations in which some important environmental impact can be caused.
In-depth assessment reports are normally required and months can be spent
in the process of getting the permits.
A property transfer tax of up to 6% is payable by the acquirer on sales or
transfer of real estate. An annual real estate tax of 0.2% to 5% is levied on the
assessed fair market value of the property. OTHER REGULATIONS
Competition law and
consumer protection The Administrative Council for Economic Defence (CADE), a government
agency, is responsible for investigating and suppressing unfair business
practices and anti-trust monitoring. The Antitrust Law (Law 8884/94) contains
wide-ranging regulations in defence of free-market competition.
There are specific agencies concerned with standards, quality and supply
of foodstuffs, including imported products and regulations on weights and
measures that must be observed by the consumer products sector. The
Consumer Code Defence considerably strengthens the rights of customers. TAx AND VAT The Brazilian tax system is highly regulated and extremely complex. Different
taxes/rates on the federal, states or municipalities levels have become a key
theme in all sectors and for most companies that operate in Brazil.
Despite no specific tax being additionally imposed in the retail and consumer
sector in Brazil, the tax implications in the supply chain management are
definitely crucial to determine the level of profitability and competitiveness for
most of the companies. 5 2006/2007 FROM SÃO PAULO TO SHANGHAI
New consumer dynamics: the impact on modern retailing* Brazil
The main direct and indirect taxes applicable in Brazil are: Corporate Income Tax Corporate income tax (IRPJ) is charged at the rate of 15% plus a surcharge of
10% on annual taxable income in excess of BRL240,000 (approximately
USD109,000). Additionally, a social contribution tax on profits (CSSL) is
applicable at the rate of 9%. Social Integration
Programme Tax (PIS) and
Social Contribution on
Revenues (COFINS) PIS and COFINS (generally levied at 1.65% and 7.6%, respectively), are
federal contributions calculated as a percentage of gross revenue. Newly
enacted PIS/COFINS credit systems are meant to ensure that tax is applied
only once on the final value of each transaction. As from May 1, 2004 the PIS/
COFINS contributions apply also on the imports of goods and on the payment
of services to non-residents, while exports are exempt. Federal VAT (IPI) This federal valued-added tax is levied at varying rates around 10-15% on
nearly all sales and transfers of products industrialized in or imported into
Brazil. Exports are exempt. State VA...
View Full Document
- Spring '08