Ends tax on financial transactions related to foreign investments in stocks

The Government reduced to zero the tax on financial transactions related to certain forms of foreign investment, including: 1) transfers of funds from abroad to be held in equities on the stock exchange or futures and commodities exchange, as regulated by the National Monetary Council (CMN), except for operations with derivatives resulting in predetermined income; and 2) inflow of resources to acquire (or subscribe to) shares in initial public offerings registered or exempt from registration with the Commission Securities, provided that in both cases, the issuing companies are registered for trading of shares in stock exchanges.

• Type:

  • Promotion and facilitation (Investment incentives)

• Industry:

  • Not industry specific

• Sources:

  • Official Gazette, Decree 7632/2011, http://www.in.gov.br/imprensa/visualiza/index.jsp?jornal=1000&pagina=2&data=01/12/2011, 01 Dec 2011
  • EIU, Country report, http://www.eiu.com/index.asp?layout=displayIssueArticle&issue_id=228691207&article_id=678691252, 01 Jan 2012