One of the most threatening tax matters to international investors was the change on the deductibility of goodwill rules for tax purposes. The rule has not changed and investors shall have one more year of fiscal predictability in Brazil. Since the beginning of 2010, when the IFRS (International Accounting Standards Board) rules became mandatory in Brazil, there is a high expectation on the market that Brazilian Internal Revenue Service (“RFB”) would release a normative act regarding the procedures to deduce the goodwill obtained on merger or acquisitions, considering that the accountability rules were already adjust to the new model.
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Almeida Advogados´ Team