What can companies expect from Brazilian economy in 2020?

Brazil is again in the world’s spotlight. After some years of uncertainties, Brazil is reborn like a phoenix. The Brazilian economy is showing several signs of recovery and economic growth is already a reality. If you want to know what to expect from the Brazilian economy in 2020, check out this post that Gescon’s team has prepared for you!

1) Tax reform

There are several points of unanimity regarding tax reform. The political class is convinced of the importance of new legislation, the representatives of all entities in the productive sector support and push for it.

Therefore, everything indicates there will be simplification of tax legislation and reduction of the number of taxes. After all, reducing bureaucracy is an urgency and a way to encourage new business and improve the economy.

2) Encouraging entrepreneurship and technology

Brazil has always been considered very hostile to free enterprise compared to other countries, like the United States. However, Brazil is a massive market and one the early adopters of new technologies in Latin America.

However, the Minister Paulo Guedes has already announced new economic measures aimed at encouraging investments. All this will help the economic growth in the country, as well as increase the profitability of companies that settle in Brazil.

3) Administrative reform and new federative pact

In 2020 Brazil will have an administrative reform aimed at reevaluating the actions of the country’s government. The economic return to society is still very small compared to the amount of taxation collected by the Brazilian state.

The change is for a new federative pact in 2020, with a better distribution and division of resources among the Union, states and municipalities.

This redistribution of resources will provide greater autonomy to states and municipalities, positively impacting the economy and, consequently, in the companies.

After all, these administrative changes bring about other more sectoral changes, providing greater security for foreign businesses and entrepreneurs.

Are you thinking of investing in Brazil in 2020?

Tax and accounting system are globally known for its enormous complexity from a legal and administrative standpoint, because of the complexity of the local rules. You need an adviser that knows the subject and is on-site. For these reason, Gescon Brazil is the partner you need to invest in a country you do not know.

We have full BPO, secretarial services accounting, tax compliance audit and business consultancy. The combination of global experience and local knowledge of Gescon Brazil will enhance your ability of doing business in a foreign country.

Gescon Brazil delivering global experience with local knowledge! Your growth is our growth! For more information contact us on www.gesconconsultoria.com.br and talk with our expert’s team!