Flavio Maluf is one of the most successful businessmen in Brazil. As a business owner, Maluf understands how difficult it is to run a business in Brazil because of the high tax rates that have been imposed by the government. Recently, the government has endorsed Fiscal Incentive Laws that in turn allow the companies to utilize part of the money they pay in taxes to projects such as sports as well as scientific and technological research. Instead of directing the money to the government in the form of taxes, Flavio Maluf states that the money will go into benefiting the society through the proposed incentives. Read more about Flavio at negociosemfoco.com
Flavio Maluf has stated that directing the money to social and cultural projects will significantly benefit the companies since they will reinforce positive portfolio through giving back to the society. For instance, when a company sponsors a sports team, the company will benefit by advertising their brand. Companies should also note that there are regional tax incentives and the incentive policies are only restricted to companies in specific regions.
Flavio Maluf also highlights that the public administration is responsible for issuing tax incentives to specific companies depending on their field of operation. By doing so, the public administration ensures that some industries have experienced extensive growth. The incentives are issued in the form of tax exemption, reduction, and compensation. Some of the sectors that have significantly benefited from the tax incentives are such as infrastructure, aerospace, information technology, port, audiovisual structures, and export companies.
Fiscal Incentives can either be classified as municipal, state or federal and they vary from one state to another. For a company to benefit from the tax incentives, it must be taxed based on the company’s real profit margins. Flavio Maluf points out that companies that are taxed based on estimated profits do not qualify to benefit from the tax incentives.