The adequacy of the Brazilian rules of corporate income taxation to international standards and the guidelines of the Organization for Economic Cooperation and Development (OECD) is decisive for Brazil to attract more investments and increase its participation in global value chains. The alignment of the rules to the new world order, established by the Erosion Project of the Tax Base and Transfer of Profits (BEPS), will increase the chances that Brazil will receive a larger part of the US $ 4.4 trillion that multinationals have for productive investments throughout the world.

The conclusion is in the study Taxation of corporate income: Brazil needs to adapt to the new global rules, which integrates the set of 43 documents that the National Confederation of Industry (CNI) presented to the candidates for the Presidency of the Republic.

"The current Brazilian system of corporate income taxation discourages investments and drives us away from global value chains," says Mário Sérgio Telles, Tax and Tax Policy Manager at CNI. "Following the best international practices is the best way to safeguard the collection and, at the same time, make the country more competitive," he adds. According to him, this also depends on the extension of the network of bilateral agreements, to avoid double taxation. Today, Brazil has treaties of this type with only 35 countries.

The CNI document notes that China and India have been reaping the results of adopting these measures. The two countries have presented enviable economic growth rates because they combine characteristics of large consumer markets and labor availability with strategies to attract investment and convergence to international standards. "Brazil has similar characteristics in relation to the consumer market and the labor force, but it is necessary to improve tax rules to attract more investments," said the CNI.