The Brazilian aviation sector includes three large companies on the list of institutions that benefit most from tax breaks in Brazil.
The tax benefits, which include salary relief, special tax systems, subsidies and other mechanisms that reduce the tax burden, contributed to savings of R$ 4.4 billion for LATAM in 2022 alone, making the largest airline in Brazil occupy fourth place in the list of the best 10 airlines in the world. Tax exemptions.
This ranking was prepared by Poder360 with data from the Federal Revenue Service and shows that from 2020 to 2021, Latin America outperformed Chevrolet (GM) and Samsung. From 2021 to 2022, the airline ranked fourth after Fiat Chrysler (FCA/Stellantis).
However, LATAM has not been outdone by GE Celma, the Brazilian arm of General Electric Aerospace, responsible for manufacturing and maintaining the engines that power Airbus, Boeing and Embraer aircraft, as well as the Brazilian Air Force's SAAB Gripen NG fighter. Headquartered in the mountains of Rio de Janeiro, GE ranked second in 2020, but in 2021 and 2022, it was overtaken by Vale.
Still in the aerospace sector and in the top 10 is Embraer, the world's third-largest aircraft manufacturer, which has accumulated waivers worth R$2.4 billion in 2022, tied for ninth place with Syngenta, a Chinese company in the technology and agricultural inputs sector. :
Companies that receive the most tax incentives (via @powder360) pic.twitter.com/Z7qYmrnYoI
– Thomas Roman (@trauman) June 17, 2024
In an official note, LATAM informed that it was “considering publication
Consultation on tax relief data, as it enhances data transparency and economic stimulus policies and gives companies like LATAM the opportunity to demonstrate
How much do they invest in the country?
GE said, “It operates in accordance with current legislation, being systematic with regard to the financial nature.” The main tax incentive for GE CELMA is RECOF, a modern customs system that ensures the competitiveness of exporting companies. This allows taxes due on the import of engines and spare parts undergoing repair in Brazil to be deferred until export without accumulating tax credits since the export of repairs and materials enjoys constitutional immunity. It is important to note that GE Celma's operations in Brazil are responsible for providing 3,000 direct and indirect jobs, as it is the second largest exporter of services in the state of Rio de Janeiro and one of the largest exporting companies in Brazil.
We have contacted Embraer for a job, and once the manufacturer responds to us, the report will be updated.
Charlotte Whitmore is a contributor at Mediarunsearch.co.uk, covering a broad range of topics including news, politics, business, technology, sport, entertainment, and lifestyle. She focuses on delivering clear, balanced reporting and practical information that helps readers stay informed about current events and emerging developments. Her work highlights stories that matter to everyday audiences, with an emphasis on accuracy, relevance, and accessible journalism that keeps readers connected to the issues shaping the UK and beyond.