Brazil Private Equity Hopes to Dodge New Tax

Brazil Private Equity Hopes to Dodge New Tax

Brazil Funds Economy & Policy Corporate & Sovereign Strategy

Brazilian private equity funds, known as FIPs, are lobbying the government for an exclusion to the recently increased IOF tax. Brazil last week hiked the charge to 6% from 4% to try and contain FX appreciation from heavy cash inflows. However, the ABVCAP local private equity and venture capital association argues that its members should not be subject to the tax, due to the long-term nature of their investments. Ken Wainer, managing principal at VBI Real Estate, says FIPs have to pay the 6% tax

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