News

American Multinational Companies Are Investing Less In Brazil

- Aug/2018

Trump’s tax policy and electoral uncertainty are among the main issues responsible

The investment of American multinational companies in Brazil has fallen drastically. From 2017 to the present, total investment dropped from 15.7% to 6.6%. Historically, US multinational companies have always been the largest investors in the Brazilian economy, accounting for about 22% of all foreign investment in the country.The decline in investment began in earnest in 2014, when Brazil entered a recession, but intensified after the US tax policy implemented by the current administration, which reduced its companies’ domestic income tax from 35% to 21%. In Brazil, the tax rate remains at 34%.

In addition, as a form of incentive, the new US legislation has allowed multinational companies to repatriate their assets in the US with a lower income tax burden. This option has become extremely attractive to foreign investors unable to expand their operations in Brazil, and have now decided to reallocate their capital to the US or to other countries. Among the companies that have left Brazil in recent years are banking market giants, such as Citibank and HSBC.

Another determining factor for the fall in foreign investment is due to political and economic uncertainty that surrounds the upcoming presidential elections in Brazil, in October. According to analyses by economic experts and market analysts, there is a great deal of concern among US investors regarding issues related to the fate of tax reform and privatization in the Brazil, regardless of which candidate is elected.

HAYMAN-WOODWARD CORP is a holding group of a variety of companies, including business advisory, compliance, business development intelligence consulting, banking and wealth management, family office, aviation, foodservice and others. The group has more than twenty years experience in supporting companies and individuals in their challenges to build value across borders. We have a team of experts in many industry segments in 6 offices around the world, to fully assist our clients.

HAYMAN-WOODWARD’s global network of professionals, provide: Family Office Services, Tax Advisory, Technology Management, Business Development Outsourcing, Behavior Analysis & Profiling, and Business Consulting Services. With unparalleled experience across most industry segments since 1996, our team of skilled professionals has delivered valued services in over 100 countries, by assisting our clients in becoming high-performance and efficient entrepreneurs, businesses and government entities.

HAYMAN-WOODWARD focuses on managing our clients’ investment portfolios, tax advisories, as well as business development opportunities for clients worldwide, seamlessly bridging cultural gaps and ensuring clients’ continued success in the new market of their choice.

HAYMAN-WOODWARD’s clientele is made up of businesses of all different sizes, from small businesses enterprises to Fortune 1000 companies.

HAYMAN-WOODWARD’s team of professionals and management have a combined 50 years of experience in their fields, and are located in our offices in the United States of America, Asia, Europe and Latin America. The company offers a variety of services to help its customers achieve their maximum ROI and a clear path to profitability in several markets worldwide.

More News


E-Verify® is a registered trademark of the U.S. Department of Homeland Security