Flavio Maluf is the president of Eucatex Group. He had begun his career in 1987 but let to go to the industrial areas. It is his uncle who called him back to Eucatex Group to join the group of executives. It wasn’t until 1997 when he was made the president. Flavio has the idea of Fiscal Incentive Laws fostering the economic and social development of Brazil. Read more about Flavio at terra.com
Getting a business to grow from scratch to something within Brazil is difficult considering the comparatively high tax charges by the government. Flavio Maluf suggests that entrepreneurs should be made aware and convinced about tax incentives as this will help in business growth. The proposed Fiscal Incentives Laws has the objective to use the money that is deducted from businesses as a tax to social, health, scientific research, technological, sporting and cultural projects.
By doing this the tax will be used to develop the country socially and economically. However this does not imply that companies will not pay taxes, they will use the tax money to make a name for themselves by engaging in projects and this will also at least save the money that would have been used in advertising.
With the Fiscal Incentive Laws also comes the regional tax incentive which focuses on companies in specific regions granting them benefits. An example is the revolutionary Manaus Free Zone which was started in 1957 to turbocharge the development of countries in Western Amazon. Different companies in different areas will also receive regional incentives which can be in form of reduction, exemption and compensation. This is so as to help the companies in their development which will also help create a pool of jobs thus helping economy to grow.
According to Flavio Maluf the Fiscal incentives vary from state to state and have terms of participation. For a company to participate it ought to taxed with regard to real profits meaning that any company that gathers taxes based on arbitrated or presumed taxes is disqualified.