1. International Payment Gateway – A Weak Bone in Brazil’s Prosperous Foreign
Investment
Brazil Fresh foreign investment in Brazilian stocks
plunged 70 percent in the first half of 2011, dragging
down a market that had been one of the hottest last
year.
Rising inflation, political interference in key sectors
and measures to slow down credit growth have all
damped foreign investor sentiment towards Brazil’s
market, forcing some companies to scrap public
offerings despite the strength of the country’s economy.
Brazilian law has also gives the same protection and guarantees to foreign capital
investments that it gives to investments made by Brazilian nationals. Special
incentives are offered for investments in mining, fishing, tourism, shipbuilding, and
reforestation and for projects undertaken in the northeast and Amazon regions.
Brazil's Foreign Capital and Profit Remittance Law of 1962, as amended, regulate the
registration of foreign capital and of reinvestment, profit remittance, interest, royalties,
and payments for technical assistance, as well as repatriation of foreign capital. There
is no limitation on the repatriation of capital; reinvestment of profits is considered an
increase of the original capital for the purposes of the law. Prohibitions on remittances
for royalty and technical service payments between related parties were removed
under the 1992 tax code. The base tax rate on profits and royalty remittances was
reduced from 25% to 15%.
However, it’s frustrating news for investors that there is no international payment
gateway which suit for local payment habitation in such a prosperous market. Boleto
has also seen the deficiency and came up with a solution- establish partnership with
international payment service provider GlobeBill (www.globebill.com). By
establishing a local payment gateway in Brazil; GlobeBill can effectively help the
foreign investments solve the problems of operating difficulty.
As a representative of GlobeBill, Lin said that the number of Chinese the local
payment service provider hard-party payment companies involving in Brazilian
Foreign Trade receivables were very limited which has caused a lot of obstacles when
foreign power want to enter the Brazilian market. To solve this problem, GlobeBill
will launch a payment solution in Brazil's largest local online payment Boleto in
mid-May. The payment gateway will be able to provide both Brazilian and Asia
merchant a professional payment solution in Brazilian local business.