Specialists Warn that an Excess of Government Regulation Risks Driving Away Foreign Investment.
The complexity of the Brazilian tax system may lead foreign companies considering investing in Brazil to think twice. There are, however, many attractive aspects of doing business in Brazil, as attests Ranieri Giunta, specialist in commercial and contract law at the global law firm SQ Law, with offices in Rome and Brussels.
“Brazil has a complex system, filled with rules, which imposes legal costs for foreign companies who wish to do business with Brazilian companies”, observes Ranieri Giunta.
Ranieri is in Brazil as part of a legal work exchange with the Brazilian law firm, Moura Tavares, Figueiredo, Moreira e Campos Advogados, which has recently joined SQ Law as a member of the global legal alliance of independent law firms, Legal Netlink Alliance (LNA).
Ranieri notes that in spite of the complex tax system, Brazil remains attractive due to the ongoing economic stagnation in Europe. Considering that Italy’s Gross Domestic Product (GDP) was -2.2% in 2012, emerging markets such as Brazil become decidedly more interesting.
Brazilian labour laws are more favourable than in Europe (37% taxes compared to 47% in Italy); and some recent changes have made it simpler for foreign companies to do business in Brazil.
After joining the Vienna Convention last year, contractual issues are clearer in Brazil; cross-border regulations will be applicable in import and export contracts and will create a more stable environment with stronger judicial security. With such clarity in the rules to be followed, this convention will contribute to lowering the cost of doing business.
Both law firms – Moura Tavares, Figueiredo, Moreira e Campos Advogados and SQ Law – affirm the value of their collaboration to serve their respective clients on the South American and European continents, both between themselves and within the context of the Legal Netlink Alliance.
To view full article from Diário do Comércio, by Aparecida Lira, in Portuguese, click here.