Flash News from Brazil | Legal & Business
Events in Brazil with foreigners: Spain | Charting paths in a wider world - IESE Business School, University of Navarra, 1-3th November, São Paulo
Foreign in Brazil 3 | Immigration | Exemption of Visa (short term) to persons with Common Passport – Agreement Brazil-European Union: "Union citizens and nationals from Brazil that are holders of an ordinary passport can enter, pass and stay, without visa, into the territory of the other Contracting Party, only for purposes of tourism or business, by a maximum term of 3 months during a period of 6 months" (Article 1º, Aim of the Agreement contained in Decree 7.821/2012)
Real Estate & Capital Markets | Real Estate Investment Fund: Normative Ruling n. 528/October, of the Securities and Exchange Commission of Brazil, with the addition of the "market maker" as new function in the structure of Real Estate Investment Funds, function that can not be rendered nor by the administrator, nor by the manager.
Events in Brazil with foreigners: UK | Unlocking Disputes in London: world’s leading dispute resolution centre - UK Trade & Investment, The Law Society of England & Wales, British Consulate-General, 23-24th October, São Paulo
Events in Brazil with foreigners: Luxembourg | Enhancing Business and Investment opportunities between Brazil and Luxembourg - Luxembourg for Finance, Brain, Luxembourg's Chambre de Commerce - Départment International, 17th October, São Paulo
Events in Brazil with foreigners: Belgium | Seminário Bélgica: Capital dos seus Negócios na Europa - Flandres Investment & Trade, FeComércio, Belgium General Consulate, 17th October, São Paulo
Investment Opportunities | Tax, Government Projects & Brazilian Economy 2 | The Law 12.715/2012 and the tax benefits to the sectors of Health, Education & IT, Education & Engineering, ICT.br, Auto Industry: HEALTH: deduction of Income Tax with donation and patronage to projects related to cancer and deficient persons, term until 2015 (natural person), term until 2016 (legal entity), deduction up to 1% || EDUCATION & IT: the social project one computer to one student will benefit the big companies that win bidding process with the suspension of IPI (Impost on Industrialized Products), PIS/PASEP and Cofins a specie of taxation on gross revenue, observing that, after, suspension will be converted to zero percent in tax rate || EDUCATION & ENGINEERING: big companies that build schools to kindergarten will pay 1% on the project, including in this percentage Income Tax, PIS/PASEP and Cofins, Contribution on Net Profits, term until 2018 || ICT.br: Brazil aims and need expand their infra-structure on Information and Communication nets, reducing differences and increasing mass access - with this actions big companies will have suspension on IPI, PIS/PASEP, Cofins and II (Impost on Importation), observing, after, the transformation of suspension to zero tax rate and the term until 2016 || AUTO Industry: this industry will have presumed credit on IPI concerning investments in researches, clean tech and other related measures, and also benefits to some importations.
Tax, Government Projects & Brazilian Economy 1 | The Law 12.715/2012 and new Transfer Pricing rules: or amendments to the Law 9.430.1996: e.g., according Article 18 of this law, there is no tax deduction of expenses over the difference between the amount of the private price (used among related parties) and the prices established by the government (these established such as a parameter of fair price). If the method adopted to determine the “fair price” is, among others, the selling price in Brazil minus the profits (PRL), then these profits (markup) will be calculated according the economical sector: I - 40%: a) pharmaceutical products and pharmaceutical chemicals, b) tobacco products, c) equipment and optical instruments, photographic and cinematographic d) machinery, apparatus and equipment for use in health services e) extraction of oil and natural gas, and f) derivatives oil, II - 30%: a) chemicals b) glass and glass products; c) pulp, paper and paper products, and d) metallurgy, and III - 20% for all other sectors. When minor is the markup, higher is the parameter price.
Investment Opportunities | Foreign Investment in Brazilian Real Estate Market | The Law 12.715/2012 and some adjusts to take tax benefits: The Brazilian Government wants to accelerate the real estate market making a faster circulation of credits in this infra-structural sector, attracting foreign capital. And the Law 12.431/2011 is a result of this desire - Article 1: "Is reduced to zero the rate of Income Tax charged on the profits [any amounts which constitute remuneration of invested capital, including that produced by variable income securities, such as interest, premiums, commissions, as well as positive results from some investment funds and investment clubs] earned by securities acquired up to 1th January 2011, that is object of public distribution, issued by private legal entity that is not financial institutions, and regulated by the Brazilian Exchange Comission or by the Monetary National Board, when payed, credited, to foreigner beneficiary, excepting in tax havens (income tax lower than 20%)". In September, 2012, the Law 12.715 added, as condition to the tax benefit of the Law 12.431, e.g. that "it is prohibited the repurchase of the security by the issuer or related part to the issuer, in the first 2 years after their issuance and settlement trough early redemption or prepayment". There is a lot of demand in the Brazilian Real Estate Market - but there is a buble in this market? The answer starts from here: securitization of mortgages, law 9.514/1997, article 8: "Operation by which the mortgages (credits based on real estate assets) are connected with a Securitization Term of Credit, issued by a securitization company". The proccess to issue real estate credits (Cédula de Crédito Imobiliário, Certificado de Recebíveis Imobiliários) shall be solid, secure, always looking for good guarantees and informations to the players - and is for this that the Brazilian legal framework works to.
Sovereignty protection | Foreign in Brazil 2 | Rural Land | Purchase and Lease of Rural Land by foreigners became difficult in Brazil: "The Request for Authorization to natural foreign person or legal foreign person or equivalent acquire or lease rural land shall be submitted to the headquarters of the Regional Superintendent of INCRA (National Institute of Colonization and Agrarian Reform) in the State of situation of rural land to be acquired"; "When required, the project shall contain documentation concerning the following minimum elements: I - proportionality between the lands and the dimension of the project; material's schedule as well as financial of the investment and its implementation, III - possible use of official credit to finance all or part of the enterprise”, among others. "(Articles 2 and 3 of Normative Rulling 1, involving the Ministries of Rural Development, Agriculture, Livestock and Food Supply of Development, Industry and Foreign Trade, the Tourism and the National Institute of Colonization and Agrarian Reform).
Foreign in Brazil 1 | Foreign workers in Brazil. Temporary Visas for Permanent Visa: The Ministery of Justice will allow foreign, with work contract in Brazil for longer than 2 years, requere the transformation from temporary visa to permanent one, observing that before, the period for this transformation was 4 years.
Tax Treaties against Double Taxation in Brazil | Key-Words: Sovereign, Worldwide Income Taxation, Tax Treaties agains Double Taxation, Brazil, European Union, Belgium, Internationalization of Companies, Profits, Dividends, Interest on own capital, Philosophy, Tax Law and Business. Link to E-Learning Environment: danceoflions.rafaeldeconti.com
Brazilian Law Books in English
- Business Law in Brazil, 2012, 1ed.
- Course of Brazilian Tax Law, 2012,1ed.
- Juridical Handbook of Investment Funds, 2ed.
Go to Bookstore: rafaeldeconti.com/books
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Flash News from Brazil | Legal & Business
Rafael De Conti
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