Brazil is a country of entrepreneurship, with a large entrepreneur base. However, less than 20% of new businesses survive their first year. Most startups will close their doors due to several factors. Including a lack of preparation, taxes and ambition. One of the factors that can be changed is how taxes impact new businesses. Brazilian has one of the most challenging regulations in the world. In addition, Brazilian entrepreneurs pay a higher portion of their taxes to the government. Flavio Maluf believes that navigating the Brazilian tax system successfully can also help improve a business chances of success.
Maluf proposes the introduction of the Fiscal Incentive Laws. This law can target how companies pay their taxes while also decreasing their tax liability. Businesses can choose how their taxes are utilized. The funds can be used for social and economic Improvement and development within Brazil. Specifically targeting areas such as health, social and cultural programs. These areas would greatly benefit in the stability of the country and improve the conditions of the country’s citizens. Another benefit is exposure. Investing in social programs can have a positive impact on how a company is portrayed in the media. Which can lead to attracting customers and increasing profits. Find out more about Flavio at barbacenaonline.com
Industry specific tax incentives can also be beneficial. Especially, in the areas of Technology, Agriculture and Aerospace. These industries can significantly impact the performance of Brazil’s economy and push the country forward in the world stage. Decreasing taxes in these areas can help to increase production and hiring in these industries.
In addition to tax incentives companies must understand that the road to entrepreneurship is steep. Success is not only determined by reducing taxes. Entrepreneurs must have the grit and strategy to succeed. Having the right plan can help a company withstand competition as well as the high startup cost to starting a business.
Flavio Maluf has an extensive trade industry background and is the current CEO of Eucatex. He joined the company in 1987 and quickly extended to the height of President due to his management skills. Flavio graduated with a Mechanical Enginnering degree from (AmandoAlvaresPenteado Foundation) FAAP.