It has become a difficult task for entrepreneurs to be able to maintain a live business when it comes to Brazil. The main cause of this is the high tax burdens which require being paid to the government. It is some tactics that help some companies to manage to breath using this direction due to tax incentives. These are what Flavio Maluf talked about who is the executive and businessman. He is the president of Eucatex companies.
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The Fiscal Incentive Laws proposal is that it can enable the companies to have the opportunity to use some of the values that go to heavy tax to projects which are contemplated by the legislation. The projects can either be cultural, social, sporting, scientific research, health programs, and technology. Using this method where the money will not go to the government directly and left to benefit the society. It will help to foster the social and economic development of Brazil.
However, when incentive programs are introduced to the companies, it doesn’t mean that they will not be spending money meant for taxes. All they will do is to spend it strategically. Flavio Maluf believes that the main benefit of the program will be able to allow the company to have a positive image because it will be associating its name through sponsorship. When a good strategy will be drawn, it can end up representing financial saving to the advertising industry after venturing.
Fiscal programs will vary with different municipality and states. So that to participate in tax incentives, taxation will be based on real profit. If the company will be able to collect presumed or arbitrated profit for tax or have an option of using simple Nacional, then it will not be able to use incentive.
Flavio Maluf had started his career in the year 1987. He started in Eucatex Group at trade area then later went to an industrial area where he stayed until 1996. in 1997, his uncle who was the president of Eucatex called him so that he can join executives of the company. He later took as the president of Eucatex enterprise because of his relationship with people in the business.