Flavio Maluf, a man born into a wealthy family and into a political dynasty. His father is a known businessman and politician. Despite being born in the wealthy family, he worked hard and with excellent business skills, he has achieved in building wealth and creation of an empire. He attended Armando Alvares Penteado Foundation after pursuing a degree in Mechanical Engineering. However, he had entrepreneur desires which made him pursue full-time business. He took over the family business leadership in 1977. View flaviomalufofficial.com
The idea of starting his company Eucatex was from his great-grandfather, Salim. He had owned the largest sawmills in Latin America. The mill had been founded in 1940. It was in the 1960s when his father and uncle started using the sawmill forests and made wood fiber lining company. The origin of Eucatex is from Eucalyptus, a wood used by the company to manufacture furniture slabs and civil construction products.
According to Flavio Maluf, to maintain a “live” business is difficult in Brazil due to high tax burdens from the government. Some tactics have been helping the companies to breathe using different directions from tax incentives. Fiscal incentive laws have given companies an opportunity to direct a share of the tax value to projects contemplated by the legislation. An example may be cultural, social, technological, sporting, health programs and scientific research. By this way, the money won’t go directly to the government and therefore benefit the society. The main aim is to foster the social and economic development of the nation.
He also points out where some tax incentives have been granted out by public administration to some companies, depending on the area they operate. The role is to stimulate a particular economic activity or a specific industry. The incentives can, therefore, take tax reduction form, compensation, exemption, among others. This will allow the specific companies to invest the amount in the operations where they will generate jobs and improve the economy. Sectors like information technology, export companies, infrastructure, aerospace, and agriculture are some of the examples of the fields that benefit from the incentive laws. In addition, so that to participate in the tax incentives, the organizations can only be taxed basing their real profits. A company can be able to use the incentives if it collects taxes for presumed or opting, or arbitrated profit.