After implementing a 2% tax on foreign purchases of equities and fixed income to slow down the...


After implementing a 2% tax on foreign purchases of equities and fixed income to slow down the appreciation of the real, Brazil plans a 1.5% tax on American Depository Receipts to keep investors from flowing out of the local market. It'll be charged to companies when they deposit the shares in the Brazilian banks making the transaction.

Comments (7)
  • SoonerTed
    , contributor
    Comments (39) | Send Message
     
    So I pay a tax for the privilege of owning a Brazilian equity? I think not!

     

    This will have unintended consequences down the road.
    18 Nov 2009, 05:01 PM Reply Like
  • dieuwer
    , contributor
    Comments (2924) | Send Message
     
    This move by the Brazilian government smells like protectionism. Time for the WTO to become involved.
    Otherwise, the US should start taxing Brazilian banks with offices in the US.
    18 Nov 2009, 05:19 PM Reply Like
  • Tony Petroski
    , contributor
    Comments (6356) | Send Message
     
    Make it 45% and that will really keep money from flowing into, no wait...they wanted money to stay there?
    18 Nov 2009, 05:45 PM Reply Like
  • MarketGuy
    , contributor
    Comments (3983) | Send Message
     
    Brazil would be a superpower if they weren't, well, Brazil.
    18 Nov 2009, 05:47 PM Reply Like
  • tripleblack
    , contributor
    Comments (13581) | Send Message
     
    LOL, I like that one, MarketGuy. Reminds me of the one about the Irish ruling the world had not god made alcohol.

     

    On Nov 18 05:47 PM MarketGuy wrote:

     

    > Brazil would be a superpower if they weren't, well, Brazil.
    18 Nov 2009, 06:26 PM Reply Like
  • robert.b.ferguson
    , contributor
    Comments (10491) | Send Message
     
    Hmmm. Could be time to sell off (VIV) and (NETC) they are both in the green right now. When is the new tax going to take effect?
    18 Nov 2009, 06:30 PM Reply Like
  • tripleblack
    , contributor
    Comments (13581) | Send Message
     
    It goes into affect tomorrow (Thursday). Note they had already added a 2% tax on foreign investment, and the intent of the new effort seems to be to keep the money IN Brazil. Note their comments about ADR's...

     

    Not good. Time to start quoting Monty Python movies...

     

    www.marketwatch.com/st...

     

    On Nov 18 06:30 PM robert.b.ferguson wrote:

     

    > Hmmm. Could be time to sell off (VIV) and (NETC) they are both in
    > the green right now. When is the new tax going to take effect?
    18 Nov 2009, 06:49 PM Reply Like
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