One of the big hurdles when it comes to establishing and maintaining companies in Brazil is the high taxes imposed by the government. These taxes discourage the entrepreneurs from investing in Brazil. Eucatex Companies’ president, Flavio Maluf airs one of the approaches that can help the firms when it comes to solving the tax issue. The Fiscal Incentive Laws offers the businesses the chance to make use of their taxes or revenue in funding the projects stipulated by this legislation. The money can be used to finance cultural, sporting, scientific research, technological, health, and social programs.
The main aim of the Fiscal Incentive Laws approach is to foster the development of Brazil’s social life and economy. However, these incentives do not fully relieve the involved entities from paying tax as they will still be required to pay the amount set on them even after participating in the tax incentive programs. The major change in this approach is the money consumption. According to Flavio Maluf, the plan helps the firms in creating a positive reputation as well as associating their names with sports, cultural or social activity through sponsorships. Visit crunchbase.com to learn more.
The local or regional tax incentives are intended for firms operating in given location. These incentives are aimed at improving the given region’s social and economic state. Flavio Maluf states the public administration offers some provisions to various companies depending on their operations. The government promotes the growth of a certain economic activity or industry. The incentives in such case include the tax reduction, exemption, and compensation. These firms are allowed to grow and act as sources of jobs and also boost the economy of that particular region.
Flavio Maluf became the leader of his family’s business in 1997. Before this, he had worked in the company from 1987 where he joined the trade area of the company before moving to the industrial area. Mr. Maluf is graduate of the Armando Alvares Penteado Foundation, where he graduated with a degree in Mechanical Engineering. Eucatex Group is among the largest manufacturing companies in Brazil. Flavio Maluf also serves as the president of Grandfood. He is known for his advice on entrepreneurship. Visit: https://br.linkedin.com/in/flavio-maluf-172147b3