International Payment Gateway - A Weak Bone in Brazil's Prosperous Foreign Investment
Online, April 24, 2012 (Newswire.com) - 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.