International payment gateway – a weak bone in brazil’s prosperous foreign investment
International Payment Gateway – A Weak Bone in Brazil’s Prosperous ForeignInvestment 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 publicofferings despite the strength of the country’s economy.Brazilian law has also gives the same protection and guarantees to foreign capitalinvestments that it gives to investments made by Brazilian nationals. Specialincentives are offered for investments in mining, fishing, tourism, shipbuilding, andreforestation and for projects undertaken in the northeast and Amazon regions.Brazils Foreign Capital and Profit Remittance Law of 1962, as amended, regulate theregistration of foreign capital and of reinvestment, profit remittance, interest, royalties,and payments for technical assistance, as well as repatriation of foreign capital. Thereis no limitation on the repatriation of capital; reinvestment of profits is considered anincrease of the original capital for the purposes of the law. Prohibitions on remittancesfor royalty and technical service payments between related parties were removedunder the 1992 tax code. The base tax rate on profits and royalty remittances wasreduced from 25% to 15%.However, it’s frustrating news for investors that there is no international paymentgateway which suit for local payment habitation in such a prosperous market. Boletohas also seen the deficiency and came up with a solution- establish partnership withinternational payment service provider GlobeBill (www.globebill.com). Byestablishing a local payment gateway in Brazil; GlobeBill can effectively help theforeign investments solve the problems of operating difficulty.As a representative of GlobeBill, Lin said that the number of Chinese the localpayment service provider hard-party payment companies involving in BrazilianForeign Trade receivables were very limited which has caused a lot of obstacles whenforeign power want to enter the Brazilian market. To solve this problem, GlobeBillwill launch a payment solution in Brazils largest local online payment Boleto inmid-May. The payment gateway will be able to provide both Brazilian and Asiamerchant a professional payment solution in Brazilian local business.