Brazil’s New Plan to Tax Big Tech and Global Companies
The Brazilian government has released a new taxation plan. If the country's revenue falls down the Finance Ministry plans to place additional taxes on big tech.
This step is part of Brazil's plan to meet their financial targets by 2025. The country plans to have a budget surplus of 3.7 billion reais next year. This means they want to have more money coming in than going out. In order to do this the government must find new ways to increase its revenue.
Why Is Brazil Doing This?
Brazil is facing economic challenges. To work on these issues the government is looking for new sources of revenue. Brazil as chair of the G20 (a group of the world's largest economies) is driving global tax cooperation discussions. The new tax plan matches global efforts to ensure that large corporations pay their fair share.
What Are the Proposed Taxes?
The Finance Ministry has a few ideas for raising funds:
1. If revenues are not enough Brazil plans to apply new taxes on big tech companies. These companies make a lot of money in Brazil but they usually pay low taxes due to complex international regulations.
2. Brazil seeks to set a 15% tax rate on multinational corporations. This means that any global company operating in Brazil must pay at least 15% in taxes no matter what.
3. The government plans to change and modify the taxation of corporate income and shareholder payments. It could remove some tax breaks and implement a new program to resolve tax issues with large corporations.
What Happens Next?
The Brazilian government plans to work on these proposals to Congress in the second half of this year. If approved they could start raising additional revenue soon. This would help Brazil stay on track to meet its financial goals and ensure big companies contribute fairly to the economy.
