Bill To Approve Income Tax Exemption for Foreign Investments

Relevant news for foreign investors in Brazil, foreign investments can be exempt from Income Tax, according to Bill No. 4188/2021.

The government asked the National Congress to include, in the Bill of Framework of Guarantees, the exemption of Income Tax for foreign investments in private fixed income securities. The initiative is prone to impact debentures, incentivized debentures, CRI, and CRA.

The purpose is to increase the amount of external funds allocated to such bonds. As a result, the Dollar price is expected to drop domestically.

Foreign investments may be exempt from income tax

According to the FDR portal, in the current scenario, the Income Tax exemption for foreigners applies to variable income and government bonds. The Ministry of Economy’s representatives proposed increasing the tax benefit for corporate fixed-income securities.

The expectation is that the Bill vote in the plenary will occur in the week of May 17th.

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Written by Marcos Ferreira, Content Assistant for Drummond Advisors

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