Brazilian start-ups start movement against Angel Investment tax
By wanting to tax angel-investment in the same way as ordinary investments, the Brazilian Revenue Department may be killing this funding for innovation.
More than 30 startups, in addition to several accelerators signed the Charter of Gramado, a manifesto that asks the IRS Department to open a dialogue to review its normative instruction, which has modified the taxation of these investments and is being strongly criticized by different segments.
According to the manifesto, this measure of the Department “punishes, essentially, and forcefully, the Brazilian entrepreneurs, who already don’t have satisfactory support mechanisms for the development of their activity by the public power, and now are also at risk of loosing the important instrument of venture capital from angel investment, right in the moment it was moving towards its expansion and consolidation in Brazil.”
According to the new Department’s decision, investments in startups will be charged at a rate of 22.5% for investments with 180 days and 15% for investments held for more than 720 days.
According to Jean Lucchese, a partner at Lucchese Ludwig Advogados, this decision represents a setback by not considering the high risk of investing in startups. “Here the decision applies a similar taxation as investing in ordinary investments,” he says.
Among those who sign the manifesto are Anjos do Brasil, Curitiba Angels, Brazilian Startups Association, Acelera Serra, Bossa Nova Investimentos, Cotidiano Aceleradora de Startups, and Faeli Middle East Experts.
Source: Portal Tele.Síntese
Billy D. Aldea-Martinez, heads up Latin America and Brazil for Piano, the world’s leader SaaS Platform that allows media companies to launch Direct Monetization models, such as metering and paywall solutions for digital content and user data analysis.
Billy is also a Digital Monetization Strategy consultant and exclusively works with Latin America’s largest media groups, such as Editora Abril (Brazil), Grupo Globo (Brazil) as well as Grupo Copesa (Chile).
He also serves as Board Advisor & Angel Investor for adtech & martech startups such as Start-up Chile, Start-up Peru, Parallel18 (PR) Admetricks and Starter Daily.
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