BMW plans to build car factory

Companies that are conducting transactions, mergers, acquisitions or purchasing property in Brazil will have to follow all business law procedures, which include the country’s tax legislations. Title VI of the Brazilian Federal Constitution discusses the taxes and budget-related issues that businesses may deal with.

The National Tax Code, which was initiated in 1966, and the Administrative Tax Process may be two of the most important tax-related legislations in Brazil, as they provide a way for taxpayers to place an appeal with a federal revenues service whenever they disagree with a particular tax charge.

The major car manufacturer BMW had to postpone its plans temporarily to build a car factory in Brazil until the country’s new auto industry tax regime was released, according to the Wall Street Journal. The company wanted to wait to see if the financial viability of the project would be beneficial depending on new tax regulations for this industry. The government had previously increased taxes for imported cars by 30 percent but exempted automobile companies with a Brazilian factory.

“Brazil is a market with tremendous potential for the future,” BMW sales chief Ian Robertson said in a statement. “[The new plant] will create the necessary conditions for us to maintain the balance of sales between Europe, Asia and the Americas.”

The company will initiate production of automobiles by 2014 and plans to have a production capacity of 30,000 vehicles per year. More than 1,000 new employees will be hired in Brazil to help this car factory get off on the right foot, said BMW representatives.

Businesses interested in learning more about Brazil’s tax laws should contact experienced attorneys from a Brazilian law firm who have a strong understanding of the Brazil legal system.