Brazil Tightens Tax Net: Multinationals Face 15% Minimum Rate
Brazil Tightens Tax Net: Multinationals Face 15% Minimum Rate . (MENAFN - The Rio Times) Brazil has joined the global push for fairer corporate taxation. The Chamber of Deputies recently approved a 15% minimum tax on large multinational companies' profits.

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América - MenaFN
(MENAFN- The Rio Times) Brazil has joined the global push for fairer corporate taxation. The Chamber of Deputies recently approved a 15% minimum tax on large multinational companies' profits.



This move targets firms with annual revenues over €750 million, affecting about 290 corporate groups in Brazil. The new measure aims to prevent tax base erosion and ensure multinationals pay their fair share.



It aligns Brazil with OECD standards and the Global Anti-Base Erosion Rules. The expects to generate significant revenue: R$3.4 billion in 2026, rising to R$7.7 billion by 2028.



This tax shift matters for several reasons. First, it levels the playing field between domestic and international businesses. Second, it helps Brazil retain tax revenue that might otherwise be lost to low-tax jurisdictions.



Lastly, it signals Brazil's commitment to global tax cooperation. The government will implement the tax as an additional levy on the Social Contribution on Net Profit (CSLL).







It will take effect in January 2025, and the government will set the first payments due in July 2026. This timeline gives businesses time to adjust their financial strategies.



Critics worry the tax might deter foreign investment . Supporters argue it will lead to fairer competition and increased government revenue. The true impact remains to be seen, but the policy's success or failure could influence tax trends worldwide.



As the bill moves to the Senate, businesses and policymakers are watching closely. This tax reform represents a significant shift in Brazil's approach to corporate taxation. Its outcomes could shape the country's economic landscape for years to come.

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https://menafn.com/1109004629/Brazil-Tightens-Tax-Net-Multinationals-Face-15-Minimum-Rate
2024-12-17
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(MENAFN - The Rio Times) Brazil has joined the global push for fairer corporate taxation. The Chamber of Deputies recently approved a 15% minimum tax on large multinational companies' profits.

This ...
Brazil Tightens Tax Net: Multinationals Face 15% Minimum Rate