In the same vein, it was learned that the Brazilian government is considering an income tax exemption for foreigners who invest in national corporate bonds, hoping to reduce financing costs for local companies at a time when interest rates are rising. . The Minister of Economy, Paulo Guedes, said that the authorities are drawing up regulations aimed at “expanding the access of Brazilian companies to foreign capital”, aligning the tax treatment given to corporate bonds with that already applied to investments in shares to non-residents.
Currently, foreigners pay a 15% capital gains tax on local private sector bonds, but are exempt from the tax when investing in Brazil’s stock market and public debt.
Brazilian assets are among this year’s favorites due to the nation’s high yields, low stock valuations and a rebound in commodity prices. The Ibovespa index is the second best in the world this year, with a gain of 21% in dollars and the currency strengthened 11%.
According to the same forecasts, Latin America would receive around US$2.1 billion According to data from Bloomberg, the country’s stock market received foreign inflows of R$70 billion (US$14,000) in shares since December 17.
The Brazilian economy returned to growth in the fourth quarter, emerging from a slight recession, although the timid rate of recovery highlights the challenges for economic activity this year and the need for investment.
Source: Ambito
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