Industry seeking to encourage investments abroad

Brasília – Brazil should complete deals to avoid double taxation with countries like the United States, Colombia, Australia, Germany and the United Kingdom, in order to encourage investments of companies abroad. This is one of the recommendations included in the Brazilian Investment Abroad 2013 report, released by the National Confederation of Industry (CNI) on Thursday (16).

Additional recommendations are amending the existing laws to simplify rules for taxation on profits obtained abroad, and pursuing protection agreements in order to reduce political risks with countries like Argentina, China, Mexico, Mozambique and Angola.

The CNI went on to suggest extending diplomatic support to Brazilian companies abroad, and even setting up a branch of the Brazilian National Economic Development Bank (BNDES) in London. It also recommended expanding the Foreign Trade Chamber (CAMEX) operations to coordinate facilitation policies governing investments abroad.

According to CNI's Industrial Development director, Carlos Abijaodi, “investing money abroad results can mean market expansion, new partners, new products, increased productivity and more expertise which could benefit investments both overseas and domestically.”

The study was based on surveys of 28 Brazilian transnational companies which contributed about one third of the country's total exports in 2012. Most of them (22) are in the manufacturing sector.

Translated by Augusto Queiroz