20 Insane Facts About Doing Business in Brazil

#1 Every single day 784 pieces of legislation are created in Brazil: laws, decrees and even amendments to the constitution are very common.

#2 Due to extreme bureaucracy, the best paid profession is of owner of a notary office. Among the 10 best paid professions in Brazil, nothing less than 7 are types of public servants.

#3 The cost of such bureaucracy is estimated to be around US $30 bn/year and average 2,600 hours per capita.

#4 It takes in average 119 days to open a company in Brazil at a cost of US $700.

#5 A waiter in the Senate earns 7 times a teacher’s salary and a Senator’s driver brings home the same as a Navy Frigate Captain.

#6 Just free housing expenses paid by the government for a single judge would cover the budget for 24 children in public schools.

#7 A single incarcerated person costs the state the same as free college for 3 full time students in the best Federal universities.

#8 Union laws in the constitution forbid gas stations to operate self service as in the USA. All vehicles must be filled up by an employee.

#9 The constitution warrants everyone the freedom of association to labor unions. The single glaring exception is the powerful Brazilian Attorneys Union (OAB).

#10 Double (or cascade) taxation, a heresy in all developed world, is a sad reality in Brazil. All products pay state and local tax as a percentage over a price that already includes federal tax and import taxes, for example.

#11 The sad consequence of #10 is that 50% of all tax revenues are paid by the population that earns up to 3 minimum wages – around US $9k/year.

#12 The average margin of profit for the 1000 biggest companies is 3.47%. Meanwhile the same companies pay 17.23% in direct taxation alone (not counting the double/cascade effect cited in #10).

#13 These 1000 biggest companies receive 2/3 of all subsidized goverment credit – in a country where the interbank rate is a staggering 14% aa. Small businesses credit is priced the same as personal credit and is in the stratospheric range of +100% a year.

#14 In Brazil, unemployment insurance is kept in a fund (FGTS) constantly raided by public companies through law loopholes, at yearly estimated cost of US $10 bn to the taxpayers.

#15 Per capita, Brazil imports and exports less than Cuba.

#16 If everything goes perfect in the next years, in a perfect scenario Brazil’s per capita in 2020 might hopefully be equal to 2010’s. A lost decade.

#17 Even under this catastrophic scenario, government agencies routinely gamble in the derivatives equities market à la ENRON style through its development bank (BNDES).

#18 If you earn just 4 times the minimum wage, you made into the select group of 10% top earners in the country.

#19 The high cost and inefficiency of union monopolies guaranteed by the constitution has the result that all freight carried through all Brazilian ports summed together is equal to what the 8th Chinese port moves.

#20 There are 97 times more unions in Brazil than in England and 152 times the number of unions in Argentina.

Please read the original post (in Portuguese) at Spotniks.

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