Flavio Maluf’s understanding of the tax incentive laws

Eucatex is a southern American company founded in 1951. The company has evolved over the years to become one of the leading manufacturers of building materials in South America. The company is led by Flavio Maluf, who has been at the helm since 2005. He has a degree in Mechanical Engineering from the Armando AlvaresPenteado Foundation. He also serves as the president at GrandFood, a conglomerate located in Brazil and that manufactures brands such as Premier and Golden Pet. Visit ideamensch.com to learn more

As a person who has been in the business sector for some decades, Flavio Maluf knows all the challenges that are faced by new companies when it comes to set-up and to maintain a firm in Brazil. These businesses are faced with the challenge of ever-rising tax burdens imposed on them by the Brazilian government. The high tax burdens are making it for both local and international investors to invest in Brazil. According to Flavio Maluf, this can be avoided by the use of tax incentives. Under the proposed Fiscal Incentive Laws, the companies are presented with the chance to set aside some of the funds meant to pay taxes and use them to fund projects provided by the legislation.

The projects under the laws could be cultural, social, technological, sporting, health programs and scientific research. The money is used to improve the society instead of going directly to the government. The main aim of these incentives is to foster the country’s social and economic development. However, Flavio Maluf points out that these tax incentive programs are not meant to save the companies from paying taxes.

The money that was supposed to pay taxes will now be used by the companies more strategically. He highlights that one of the major benefits of the tax incentive is that the companies have the opportunity to gain a positive image. This is possible if the company associates itself with a sports, social or cultural project through a sponsorship. The success of the strategy will act as an advertisement for the firm, hence, saving the firm from spending money in advertising. The regional tax incentives are meant for companies settling in particular areas. View: http://www.barbacenaonline.com.br/noticia/saude/flavio-maluf-e-o-novo-diretor-da-santa-casa-de-barbacena