It is hard to maintain a business in Brazil due to the high taxes. However, according to the president of Eucatex group of companies, Mr. Flavio Maluf, a business can employ specific tactics such as tax incentives to lessen revenue burden. Another significant relief for businesses is the Fiscal Incentive Laws.
The provision proposes part of the value paid in taxes to go to different developments. Such projects should have social impact and may include sporting, technological, scientific research and health programs. In doing so, the money will benefit the society more instead of going directly to the government. The law encourages social and economic development in the country for entrepreneurs to enjoy the developed infrastructures. Learn more at mundodomarketing.com about Flavio Maluf
Tax Incentive Programs
Tax incentive programs do not free businesses from paying taxes. It only provides strategic ways of spending money that could have been diverted to paying taxes. Mr. Maluf indicates that the association between the business and the people created the tax incentives is advantageous to firms since they gain a positive outlook from the public. If it becomes successful, the strategy will help business save considerably on advertisements.
Tax incentive can be applied in specific regions to encourage business growth like Manaus Free Zone. Some revenue incentives are given to certain businesses depending on the area of operations. Such incentives are in different forms such as tax reduction, exemption among others and are meant to promote specific economic activity. They allow companies to invest a considerable amount of investments that generate jobs and facilitate economic growth. Sectors that may benefit from such tax incentives include agriculture, information technology among others. Fiscal programs can be federal, state or municipal and may vary in different regions. Tax incentives can only be realized if enterprises are taxed based on the real profit.
Mr. Flavio Maluf started his career in the Eucatex Group trade area in 1987. He later moved to the industrial area where he remained up to 1996. His uncle introduced him to the company executive position. In 1997, he was elevated to become the president of the enterprise. Flavio Maluf is conversant with the tax laws.