May 31 and June 1:
German-Brazilian Business Days in Munich: Revenue and tax opportunities in the growth market Brazil
São Paulo/Munich, June 1, 2010 – The growth opportunities for German businesses in Brazil are increasing dramatically. World Tax Service WTS headquartered in Munich has recognized this as well and has therefore strengthened its presence in South America. As of the beginning of this year, the tax unit of the law firm “Zilveti e Sanden Advogados” in São Paulo is called “WTS do Brasil” and is part of the WTS Alliance global network.
The annual German-Brazilian trade volume stands at USD 16 billion. Over 1,200 German companies are already active in Brazil – and the economic relationship between the two countries will only grow stronger in the future. The fact that Brazil has been chosen to host the 2014 Football World Championship and the 2016 Summer Olympic Games will significantly contribute to this. Businesses that are involved in the preparation activities for the competition benefit from tax exemptions. Oil production is another area of growth for German suppliers. A third aspect is the EU’s recently approved EUR 2.5 billion development project to be invested in the construction of public housing. And fourth, a multitude of local projects subsidized by the Brazilian government, in particular in Northern Brazil, attract foreign businesses with direct investments.
Companies involved in any of these activities require support in tax-related questions. Therefore WTS has set up a Brazil Tax Desk in Germany: “The Brazilian tax system presents a particular challenge for German businesses active in Brazil. It is extremely complex compared to that of other countries, in particular in the area of indirect taxation,” explains Klaus-Peter Hüsgen, Partner at WTS. However, there are possibilities to calculate taxes in advance. Moreover, the country has a very advanced computer system for taxes and has initiated several programs that will help reduce the tax burden. Although the Brazilian tax system is not consistent with the OECD guidelines, foreign investors enjoy legal and tax certainty. In the last few years Brazil has been able to prove that foreign investment pays off.
Tax Advice and Legal Advice from WTS do Brasil
The WTS Alliance has been active in Brazil for over five years. WTS do Brasil now offers top-quality preventative consulting services and expert opinions on direct and indirect taxes locally. Furthermore, the company supports companies with the preparation and implementation of tax planning in the course of company restructurings. WTS do Brasil also represents clients in financial court proceedings.
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Note to editors: We would be happy to arrange an interview with Klaus-Peter Hüsgen from the Brazil Tax Desk in Düsseldorf as well as with Fernando Zilveti from “WTS do Brasil” in São Paulo on short notice.
