You're wrong. In Brazil corporate income is taxed at 34,5% (base 15%, plus additional 10% for medium to big sized companies, plus 9,5% for social security) Tha

You're wrong. In Brazil corporate income is taxed at 34,5% (base 15%, plus additional 10% for medium to big sized companies, plus 9,5% for social security) That amount is on par or above OCDE counties, and much higher than most developing nations. What we don't have is dividend tax. Unlike corporate tax that one must pay every quarter, you only pay dividend tax if you give money back to shareholders, so reinvestments are not taxed. Usually countries balance income and dividend taxes so the government has a stable income but doesn't penalize investments as much. In Brazil, we opted for screwing investors. Not to mention that companies pay an enormous amount of money in combined sales taxes. A manufacturing company usually pays 17% for state sales tax, another 9,35% federal social security, and sometimes an extra 5% to 15% for "luxury good" (like shampoo). So, again, you're completely wrong and companies (read YOU) pay a hell lot of taxes in Brazil. Source: I worked in investment analysis in another life.