Please use this identifier to cite or link to this item:
Title: Texto para discussão 13: How should brazil tax capital income
Keywords: tributação de renda
capital corporativo
política fiscal
income taxation
corporate capital
tax policy
Issue Date: Oct-2010
Publisher: Escola De Administração Fazendária (ESAF)
Abstract: This paper visits the Brazilian capital income taxation to know whether and to what extent it is neutral to domestic investment decisions. The analysis was guided to help Brazilian authorities in the achievement of capital tax neutrality and improvement of the tax system efficiency. Based on the King-Fullerton methodology for computation of effective tax rates, this paper develops a framework to derive the pre-tax and post-tax rates of return on investment, the tax wedges and the correspondent effective tax rates in Brazil. This is to verify how the Brazilian tax system responds to different sources of finance, namely debt, retained earnings and new equity, and also to investment in three types of assets: machinery, buildings and inventories. Simulations have shown an unbalanced tax system: debt is the best fund option, inventories the worst choice for assets and the interest on net equity has small effect on improving tax neutrality.
Other Identifiers:
Appears in Collections:Textos para Discussão da Esaf

Files in This Item:
There are no files associated with this item.

Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.