The economic team has intensified discussions around a proposal to reduce the Corporate Income Tax (IRPJ) as a way to follow the changes made in the US. Finance Minister Eduardo Guardia told President Michel Temer that as soon as the model to compensate for the cut of this tax is ready he will present him with the proposed bill to be sent to Congress, say people familiar with the matter. Mr. Guardia has been warning about the impact of a smaller corporate income tax in the US can have on the Brazilian economy, a move that is being followed by other countries. Officials fear that this change will lead companies based in Brazil to move their headquarters abroad, since today they pay 34% of IRPJ and Social Contribution on Net Profit (CSLL).
Source: Valor International