In Focus

Brazil: Tax Reform Draft

Jair Bolsonaro is facing one of Brazil’s biggest economic challenges, namely the vote on constitutional amendment n ° 293-A / 2004, which aims to reform the national tax system.   The Goal of the Tax Reform The constitutional amendment replaces several earlier proposals. This proposal was prepared by a group of tax lawyers from the…

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Brazil: Income Tax adjusted for Inflation

President Jair Bolsonaro said that the government will make a correction in the table of income tax for the coming year. In an interview with Radio Bandeirantes, Bolsonaro said he told Economy Minister Paulo Guedes that the table should be “at least” adjusted for inflation. The government also plans to increase the limits of deductions.…

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Brazil: Senate approves Debureaucratization Plan in first round

Brazil is one of the world’s leading countries in terms of bureaucracy for tax calculation. This mainly affects companies that lack the appropriate financial resources to deal with bureaucracy, which in turn inhibits economic growth. The bureaucracy reduction proposal, which has the status of a constitutional amendment, aims to simplify taxation and taxation requirements for…

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Brazil: Why the tax reform depends on the pension reform

The most sensitive issues of the new Brazilian government are the long overdue tax and pension reform. But which of them has priority? During a public hearing of the Human Rights Commission (CDH) on Monday, participants said that changes to the current tax system could increase federal revenue more than the proposed pension reform. Expert…

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Brazil introduces Simple Credit Enterprises (ESC)

On April 24th, 2019, president Jair Bolsonaro has signed a law that introduces Simple Credit Enterprises (Empresa Simples de Crédito, ESC) to Brazil. The motivator behind the project is that Brazilian small and micro businesses currently have little access to the credit market. ESC should help democratize the credit market and lower interest rates.  …

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Brazil: Tinder for Jobs

Currently, the Brazilian government is working on measures to liberalize its economy. The article outlines what companies have to prepare for. Because of the  forecasts of a sinking GDP the Brazilian Ministry of Economy created a package of measures aimed at increasing productivity and employment. The measures should last between 90 and 360 days. Four…

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New Legislation in Chile to Fight Corruption

On November 20th, 2018, the new Law 21,121 has been published in Chile introducing changes to the criminal law with view to corruption. The law increases the sanctions for some existing crimes and introduces new offenses as well. The new law has the following focal points: New criminal law sanctions Private bribery Bribery Higher sanctions…

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Brazil: GM stays in São Caetano do Sul thanks to tax cuts

The municipality of São Caetano founded ProAuto in order to free car manufacturer GM from the IPTU tax, reduce the ISS tax to 2% and lower the costs for waste water.   Tax Gifts for Car Manufacturers Just recently, GM announced 10 Billion R $ investments into its plants in São Paulo in order to…

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Chile: MFN Principle in International Contracts

According to the most favored nation (MFN) principle a state has to grant the same foreign trade privilege to other states which it grated to a third state. The principle is the base of GATT and many other international trade agreements.   Chile-Japan Treaty The treaty between Chile and Japan which came into effect in…

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