Brazil 's Currency Laws : The Brazilian Government Essay

1348 Words Apr 1st, 2015 6 Pages
Brazil’s Currency Laws: The Brazilian government encourages long-term investment through its tax system.” Aside from tax and financial incentives granted at the federal level, state governments and municipalities also make grants available. The most important incentives include the reductions on import tariffs or tax deductions for imported capital goods not available locally. Also, the Regime for the Acquisition of Capital Goods by Exporting Enterprises (RECAP) suspends taxes on new machines, instruments and equipment imported by companies that agree to export at a certain level of goods and services for three years. The Brazilian government has also provided incentives for technological innovation.Generally, few limitations are imposed on the foreign ownership of Brazilian infrastructure and properties.. The restrictions that are in place are intended to monitor foreign investment rather than to prohibit it altogether. For example, controls limit foreign ownership of businesses in certain sectors such as communications, news media, public utilities and transportation. In recent years, however, the Brazilian government has allowed the use and corruption of certain Brazilian businesses, including telecommunications and electricity companies, by foreign investors as part of a privatization process. The Brazilian government is making efforts to improve the atmosphere for foreign investment in order to develop a more market-oriented economy. Import barriers have been reduced…

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