For some time, foreign investors have not had to pay taxes on stock market transactions in Brazil. Now, the government has decreed a tax exemption for foreign investors who buy government debt bonds – on the stock market or on money markets.
For some time, foreign investors have not had to pay taxes on stock market transactions in Brazil. Now, the government has decreed a tax exemption for foreign investors who buy government debt bonds – on the stock market or on money markets.
Such investors will be exempt from both income tax and the CPMF – a debit tax on all financial transactions.
According to the head of the Secretariat of the National Treasury, Joaquim Levy, the measure will bring an extra US$ 4 billion to Brazil this year and, possibly, as much as US$ 10 billion next year.
Levy pointed out that similar tax exemptions exist in other countries, such as France, Germany, Argentina and Mexico.
"This is not an innovation. We are just making adjustments to our improved economic situation," he declared.
ABr