Tax Breaks
Brazil's federal government announced on 17 May 2010 that it shall be granting tax breaks for the construction and refurbishment of the stadiums for the 2014 World Cup. In a note, the Ministry for the Treasury said that it shall be "granting tax exemption to the stadiums of the World Cup, which shall not need to pay Industrialized Products Tax (Imposto sobre Produtos Industrializados – IPI), Importation Tax (Imposto de Importação – II) or social contributions (PIS/COFINS)."
In addition, the 12 cities that shall be hosting the World Cup matches shall be able to grant exemption from State Value Added Tax (Imposto sobre Circulação de Mercadorias e Serviços – ICMS) on all operations involving merchandise and other goods for the construction or the refurbishment of the stadiums. "Conditional on the cumulative concession of the benefits involving Importation Tax, IPI and PIS/COFINS, the exemption of ICMS on imports shall only be applicable if the goods do not have a similar product produced nationally," the note informed, adding that this decision shall be made feasible through a Law or Provisional Measure.
In September 2009, the Brazilian Development Bank (Banco Nacional de Desenvolvimento Econômico e Social – BNDES) opened a credit line of R$ 4.8 billion (approx. €2.7 billion, £ 1.75 billion) for the World Cup stadiums. Each host city shall be able to finance up to R$ 400 million (approx. €225 million, £ 145 million) or 75% of the project, with bank funds.
Read more about this topic: 2014 FIFA World Cup
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