FlavioMaluf, the executive CEO of Eucatex, stands behind the proposal of Fiscal Incentive Laws in Brazil. The goal of the proposed legislation is to promote social and economic development by channeling a portion of tax money towards worthwhile projects and programs. These may be cultural, technological or health-based in nature; FlavioMaluf believes this is the best way to use tax money to benefit society. Visit ideamensch.com to learn more
Companies and other business enterprises will continue to pay the usual tax rates–the Fiscal Incentives Laws would not change that. Instead, these laws would allow these companies to focus part of their tax payments towards programs of their choice. It is like an act of charity. This would improve a company’s image, according to the Eucatex executive, and could help them save money in advertising.
Other tax incentives include regional tax incentives. Companies in certain parts of Brazil receive tax benefits for basing their business in a certain area. The Free Economic Zone of Manaus, for example, is a free trade port that was approved and put into effect in 1951. This was to stimulate growth in Northern Brazil. There are also incentives like tax exemption, tax reduction and tax compensation to boost specific industries, according to Maluf. This allows companies to take that extra money and reinvest it into their businesses by creating new jobs and taking on other endeavors.
To benefit from these tax incentives, the company has to be profitable. Otherwise, they are not eligible for these incentives.
Flavio Maluf is the president of the Eucatex brand. He earned a Mechanical Engineering degree from the Armando AlvaresPenteado Foundation. Born to a politician father and renowned businessman, he followed in his footsteps as an entrepreneur, joining Eucatex in 1987, then later taking on the role of president in 1997. He is also the president of Granfood, a successful Illinois business. Visit: https://flaviomalufoficial.com/