A letter signed by representatives of 59 organizations, including ABES, sent a request to the National Congress to overturn the presidential veto against Article 7 of Complementary Law 182/2021, better known as the Legal Framework for Startups.
According to the letter, “this law has already lost several of its main articles, with extremely relevant topics for the startup ecosystem being removed, such as the regulation of Stock Options, the possibility of listing Corporations in the Simples Nacional and the equal treatment tax on investments in startups. Regarding this last topic, the only article that was left to establish a justice/minimum tax equivalence it was Art. 7, which made it possible to offset losses on eventual gains obtained, in the same way as it is carried out in investments in shares of companies listed on the Stock Exchange, which have a much lower risk and immediate liquidity than investing in startups, remembering that investments in companies on the Stock Exchange of up to R$ 700 million they are also exempt, while investment in startups is taxed as fixed income.
Another excerpt also highlights that: "from a practical point of view, currently with the veto to Art. 7, an investor who makes an equal contribution in 10 startups and in 5 of them has a loss and in the other 5 has a return of twice the invested capital, which from the point of view of economic view means that it would have in the sum only the return of its capital. Due to the impossibility of compensation, it would be taxed on the ones that won, which will result in loss! This is clearly a big disincentive to investment in startups!”
The signatories emphasize that “Brazil is 20 years late in relation to the stimulus policies for startups, according to OECD express recommendation and already adopted by dozens of countries, including all BRICS, except for Brazil and the maintenance of this veto will keep us in this delay”.
Download the full letter from this link. – https://abes.com.br/wp-content/uploads/2021/07/Carta-Derrubada-ao-Veto-Art-7-LC-182-2021.pdf
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