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Brazil to Change Rule for Local Bond Tax Exemption, Valor Says

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May 25 (Bloomberg) -- The Brazilian government is preparing changes in legislation that exempts investments in local bonds for infrastructure projects from paying income tax, Valor Economico reported, citing Dyogo de Oliveira, deputy executive secretary of the Finance ministry.

The changes, which may be implemented in two months, aim to clarify points of the legislation to make these investments more attractive, the Sao Paulo-based newspaper said.

The new rules will likely make clearer that the investor will still have a tax benefit even if the company uses the funds for purposes other than infrastructure projects, the newspaper said. The government may also include in the legislation a tax exemption for investments in mortgage-backed securities, known as CRI, according to Valor.

Story Link:{NSN M4KMDY6K50XW<GO>}

To contact the reporter on this story: Telma Marotto in Sao Paulo at

To contact the editor responsible for this story: Helder Marinho at

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