RIO DE JANEIRO, BRAZIL - According to the government's initial draft, the Corporate Income Tax rate would drop 5 percentage points - from 25% to 20% - in two years, half in 2022 and the remainder in the following year.
The economic team intends to start a political war between the thousands of Brazilian companies and a fraction of large companies in the beverage and petrochemical product sectors.
The goal is to reach a higher reduction in Corporate Income Tax (IRPJ) for all companies in Brazil linked to a significant cut in tax subsidies (revenue that the federal government waives) that are . . .