If there is one thing any good businessman should know, it is the ins and outs of taxation. For Brazilian entrepreneur Flavio Maluf, these are lessons he has learned as the chairmen and head of the Eucatex Group, a company with decades of industry experience in Brazilian wood panelling, sourcing materials nationally and internationally for construction, furniture, automobiles, and toy manufacturing.
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Flavio Maluf knows that taxes are a part of life, but for any company to thrive under the burdens of the Brazilian tax structure, Maluf advises them to investigate and make use of the Fiscal Incentive Law. While the law doesn’t quite lessen the financial burden, it does allow companies to more directly influence where their tax money goes, for instance, funding of social, cultural, sporting, technological, scientific, and health-related programs. Flavio Maluf sees the value of supporting those programs, and marketing that support, as the key benefit of this law. The positive image fostered by this financial support will pay dividends in the goodwill of consumers and in the advertising it provides.
There are also numerous, regional tax incentives that strategic companies can take advantage of. Flavio Maluf cites the Manaus Free Zone as one of the best known examples in Brazil, the incentive meant to foster economic activity in the Western Amazon. For companies willing and able, this incentive could be an enormous resource in tax savings, as well as aiding in the development of remote regions of the country.
If you look hard enough, Flavio Maluf suggests there are incentives to be found around many corners. For example, companies in specific industries can benefit from a variety of tax breaks that free resources up for investment in improving and increasing the company’s operations. Relevant sectors include technology, infrastructure, export, aerospace, agriculture, and audiovisual. Maluf, who has run his family’s business since 1997, taking over for his uncle, also advises interested companies to keep in mind that tax incentives can found at all levels of government: federal, state, and municipal. The savings are out there, and Flavio Maluf knows that the proactive entrepreneurs will find them and use them to sustain and build their business.