With the largest territory and economy in the Latin America, Brazil is member of the Mercosur, a group originally formed by Argentina, Brazil, Paraguay, Uruguay and Venezuela. Other countries are also collaborating members: Chile, Bolivia, Peru, Colombia and Ecuador.

Brazil is a Presidential Federated Republic composed of the Union, States, Federal District and municipalities, in which the exercise of power is attributed to distinct and independent branches that are subject to a system of balances and guarantee compliance with the laws of the Constitution.

The Union is divided into three independent powers that are balanced among themselves: Legislative, which drafts laws; Executive, who acts to execute programs or provide public services; and Judiciary, who resolves conflicts between citizens, entities and the State.

Brazil’s economy is very diversified with towering companies in the agricultural, commodities, industrial and service segments. The country’s GDP is the top ninth in the world, and the population is the sixth largest. Brazil has one of the biggest middle classes in the world and tends to continue its expansion based on a solid democracy and regulatory institutions. 

Regarding the taxation system, Brazilian tax rules allow independent taxing powers to the federal, state, and municipal governments to impose, regulate and collect taxes. Brazil imposes corporate and personal income tax on its residents, including Brazilian subsidiaries of foreign entities. Foreign direct investment has been growing very much according to data from the Central Bank of Brazil and stands out among the nations emerging markets.

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