The one thing that discourages most young entrepreneurs to start their own business in Brazil is because of the high tax duties their companies would have to pay to the government. Anyone who has a “live” business based in Brazil would understand that such high costs could be discouraging and sometimes overwhelming to any business start-up. However, some solutions can lower such costs, and Flavio Maluf, the President of Eucatex, believes that acquiring these tax deductions could help encourage new businesses to push with their pursuits. Visit barbacenaonline.com to learn more.
One solution for such predicament would be taking advantage of the tax incentives from the government. According to Flavio Maluf, there are now Fiscal Incentive Laws in Brazil that give companies both the opportunity and duty to divert some of their tax obligations to other projects in the society that later on could benefit their company.
For example, the company gets lower tax duties if they promise to spend most of their profits to donations for charity causes and technological programs that benefit the society in general. The main idea behind this is that the government would encourage companies to foster economic growth in the country, and by lowering taxes through this, companies would then be more likely to put their money in donations instead. These companies can then just file their donations under their advertising expenses, and so by donating, they’re saving on advertising costs. Instead of paying for advertising, stimulating the country’s economy is now their advertising strategy.
Flavio Maluf also points out that companies that focus on certain government priorities will also get extra tax incentives. If the business operates in an area that the government needs more support to generate jobs for the country, it can get such tax benefits. These sectors could range from aerospace, export companies, infrastructure or even areas that benefit incentive laws.
About Flavio Maluf’sEucatex
Eucatex is the trading firm where Flavio Maluf began his business career in 1987. It was there that he first learned everything to do with trading, mainly because his uncle was then the company’s president. Right now, Flavio Maluf is the President of Eucatex, and he is now the man responsible for the company’s current impressive success.