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Rapporteur Report On Cos. Tax Reduces Charge By BRL30B

BRAZIL

Rapporteur of Brazil's tax reform proposed cutting corporate income taxes by 12.5 percentage points to 2.5% by 2023, according to preliminary text of the bill seen by Bloomberg.

  • Initial proposal by Economy Minister Paulo Guedes shaved off 10 p.p. off income taxes in coming years.
  • Rapporteur also kept proposed dividend tax at 20%.
  • Reduction of income tax will be made possible by slashing tax incentives that benefit 20,000 companies.
  • Dividend tax targeted at investors, so levies paid between companies to holding firms are exempt. (Bloomberg)

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