Enhanced competitiveness

Reducing costs and boosting competitiveness are essential goals for      most companies. Based on this focus, Pactum transformed the reality of a multinational that sells services, not goods, and reconceptualized its entire operation.

A Pactum client since 1983, the European multinational had been growing steadily in Brazilian and Latin American markets. However, it could have thrived much more. The efficient management of its rights was a determining factor for the company becoming more competitive and increasing its market share.

Upon noting that the services provided by the brand do not constitute industrial activities or the sale of goods, but were being taxed as such, Pactum pointed out to the client the possibility of not having to pay ICMS and IPI. A lawsuit filed against the State of Rio Grande do Sul was ruled upon in 1991. The decision recognized the company's operation as a service activity which, therefore, is not subject to ISSQN (Tax on Services of any Nature), or ICMS and IPI.

Pactum's diagnosis and performance had a highly positive impact on the multinational's business. According to the company's tax manager, the benefit of lower tax costs was passed on to the products, making them more competitive in the market. The work drew the attention of the European head office, which sent two executives to check out the productivity gains that the Brazilian unit had obtained.

Accustomed to working with topnotch quality technology, the multinational also understood how to deal with the ups and downs of the Brazilian economy and choose partnerships able to generate effective results for its business. 

The benefit of lower tax costs was passed on to the products, making them more competitive in the market.



Selected Business and tax information, go inside

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Pactum Consultoria Empresarial
Porto Alegre
Av. Independência, 1199 - Conj. 301
CEP: 90035-077
Phone: 55 51 3314-1414
Fax: 55 51 3311-0438
E-mail: rs@pactum.com.br
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