Economy

Government will change PM amending taxation of Brazilian companies abroad

Brazil Agency
13/03/2014 20:31
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The government will change the text of the Provisional Measure 627, which taxes profits of Brazilian multinationals operating abroad, said businessmen who met for nearly five hours with the finance minister, Guido Mantega. However, neither the economic team, or company directors detailed the changes under study.

The government will change the text of the Provisional Measure 627, which taxes profits of Brazilian multinationals operating abroad, said businessmen who met for nearly five hours with the finance minister, Guido Mantega. However, neither the economic team, or company directors detailed the changes under study.

 

Published in November last year, the interim order expires in April. Earlier, the chairman of mining company Vale, Murilo Ferreira told that entrepreneurs wishing to support the vote of the provisional measure in Congress, provided that some adjustments to the text. 

 

By rules, Brazilian companies with foreign subsidiaries have to live with three different accounting standards, Brazilian, European and American contributing factor to hinder the balance of Brazilian multinationals. The government has created a Transition Tax Regime (RTT) for these companies, which runs until 2015, but companies complain that the new scheme increases the tax burden.

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