The Brazilian government is considering sending a bill to congress shortly after the October 7 general elections with the aim of cutting the country's corporate tax rate, according to sources.
Brazil's corporate tax is currently 34% and the market-friendly administration of President Michel Temer wants to follow the example of the US and make the rate more competitive internationally, local daily O Estado de S. Paulo reported unnamed government sources as saying.
US President Donald Trump signed into law in December last year a major tax reform that saw the corporate tax rate reduced from 35% to 21%.
The sources said the government could offset lower tax revenue from the reform with an increase in taxes on the distribution of dividends.
The Temer administration ends on January 1, 2019, when a new president will assume power.