Breaking: Brazil's Finance Ministry Reveals Plans to Tax Big Tech Companies and Implement Global Minimum Tax on Multinationals
The Finance Ministry of Brazil announced on Monday its intention to propose new tax measures in the second half of this year to ensure the country's fiscal goals for 2025. These proposals include taxing big tech companies and introducing a global minimum tax rate of 15% on multinational corporations.
In a budget presentation to Congress last Friday, the ministry projected a primary surplus of 3.7 billion reais for next year, with an estimated revenue of 17.9 billion reais from increased income taxes. Additionally, the government proposed changes to the social contribution tax on corporate income (CSLL) and interest on equity payments (JCP).
The ministry anticipates generating 58.5 billion reais from tax negotiations in 2025, including revenue from a new dispute resolution program for large taxpayers. This program follows an agreement reached this year with Petrobras, resulting in an estimated 30 billion reais in settlements.
Furthermore, the ministry expects an additional 28.5 billion reais from rulings by Brazil's Federal Administrative Council of Tax Appeals (CARF) and 20 billion reais from correcting tax distortions.
Analysis: Brazil's Finance Ministry is taking proactive measures to boost revenue and achieve its fiscal targets for 2025. By taxing big tech companies and implementing a global minimum tax rate, the government aims to secure necessary funds for the coming years. These changes could impact multinational corporations operating in Brazil and have implications for the country's overall economic outlook. Investors and taxpayers should stay informed about these developments to make informed decisions regarding their finances and investments.