BUZZ-Brazilian companies: Proposed end of tax break could hit firms - BTG

miércoles 3 de diciembre de 2014 08:23 GYT
 

** Some of Brazil's largest companies, including Petróleo Brasileiro SA and Vale SA, and some banks will be hit by the end of tax exemptions on interest on equity payments, analysts at Grupo BTG Pactual SA say

** Members of the ruling coalition plan to introduce a draft bill in Congress ending the exemption, media reported this week

** Interest on equity payments are a sort of dividend payment booked as an expense, helping to reduce taxable income

** Companies use the tax break to lure investors

** BTG analysts led by Carlos Sequeira say approval of the plan this year could result in an average 7 pct reduction in earnings and price targets of 42 companies surveyed