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BOVESPA: Foreign Investors Are Granted CPMF Exemption On IPOs

Date 16/02/2006

On February 16, 2006 the Brazilian Government approved the exemption of the Provisory Contribution over Financial Transactions (CPMF) on the public offerings of shares of listed companies at the Stock Exchange.

Since 2002, foreign investors are exempted of the CPMF Tax on equity transactions carried out at the Exchange and now this exemption was expanded to include public offerings, either initial or secondary, of listed companies, which will benefit investors interested in participate in the IPOs coming to BOVESPA in the following months.

This initiative reinforces the commitment of the Brazil in improving the openness and quality of its capital market.