July 11, 2019 |
Energy and Mining Ministry hopes tax incentives will attract new investors
Brazil's Energy and Mining Ministry has implemented a new regulation that will make oil and gas bonds tax exempt as the government looks to attract new investors and diversify capital markets funding sources, lawyers said.
“The initiative will make gains from bond revenues tax exempt during the tenor of the notes,” said a lawyer at Tozzini & Freire Advogados in São Paulo.
“Up until now, some infrastructure bonds [like electricity transmission and generation assets] have been exempt from tax on capital gains, he said. "Oil and gas was out of the club until two weeks ago but has now been included as priority sectors of the economy that can receive these benefits.”