The Ministry of Economy wants to approve the income tax exemption on gains from investments in private securities to foreign investors. The demand should gain focus on the return of the parliamentary recess, in August.
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This is an old fight of the Minister of Economy, Paulo Guedes, who defends its potential to attract investments from outside the country to the productive sector. The text has already been approved in the House and goes to the Senate.
The proposal is part of the project that creates the Legal Framework for Loan Guarantees, a document that changes the regulation of borrowing transactions and goods offered as collateral. Its objective is to reduce creditors’ risks and make credit in the country cheaper.
Equality of conditions
Investors from outside the country who invest in Brazil are currently exempt from IR for the Brazilian stock market and investments in government bonds. However, the tax is 15% on capital gains on private securities.
The government defends equal conditions, so it wants to exempt the charge on bonds issued by companies. Members of Bolsonaro’s team cite the possibility of using private bonds to finance planned investments in concessions, such as highways and railways.
For Brazilians, the income tax rate on gains from private securities varies from 15% to 22.5%, depending on the redemption period.