15BRAZILBra zil's combined corporate tax rate for 2011 is 34%. The tax consists of a basic taxof 15%.

There is also a surtax of 10% for

annual income of over BRL 240,000, aboutUS$ 110,000. Additional 9% are added for social contribution on

net profits. Theworst aspect of the Brazilian tax system from the standpoint of a foreign investor isextreme complexity

(Melo et al., 2010). During the 2010 election, Jose Serra fromPSDB (Partido Da Social Democracia Brasileira) stated

that Brazil has highest taxburden in the developing in the world and current president Rousseff supported hisstatement

(Ottens, 2010). There are approximately 52 separate taxes, imposts,duties, compulsory loans, withholdings and

other charges and fees imposed byfederal and municipal governments (Melo et al., 2010). After the 2010 presidentialelecti

on, it was surprised that the issue of tax reform has a very low profile in theagendas of president.EFFE CTIVENESS OF LEGAL

ENVIRONME NTEffectivenes s of Legal Environment 2011 IndicatorsGlobal Ranking

Brazil South KoreaStrength of Investor protection 59

th

59
th

Protection of Minority Shareholders interests

64
th

102
nd

Property right 72
th

54
th

Efficiency of legal Framework

71
st

87
th

Intellectual property protection 89

th

44
th

Legal right index 103

th

39
th

Burden of customs procedures 122

nd

47
th

Burden of government Regulation 139

th

108
th

Number of procedures

required to start a business 132

th

73
th

Time required to start a business 135

th

52
th

Source; Above data are acquire from Global Competitiveness Report 2009 2010,http://www.w eforum.org/s?s=Gl

obal+competitiven ess+report

15BRAZILBra zil's combined corporate tax rate for 2011 is 34%. The tax consists of a basic taxof 15%. There is also a surtax of 10% for

annual income of over BRL 240,000, aboutUS$ 110,000. Additional 9% are added for social contribution on

net profits. Theworst aspect of the Brazilian tax system from the standpoint of a foreign investor isextreme complexity

(Melo et al., 2010). During the 2010 election, Jose Serra fromPSDB (Partido Da Social Democracia Brasileira) stated

that Brazil has highest taxburden in the developing in the world and current president Rousseff supported hisstatement

(Ottens, 2010). There are approximately 52 separate taxes, imposts,duties, compulsory loans, withholdings and

other charges and fees imposed byfederal and municipal governments (Melo et al., 2010). After the 2010 presidentialelecti

on, it was surprised that the issue of tax reform has a very low profile in theagendas of president.EFFE CTIVENESS OF LEGAL

ENVIRONME NTEffectivenes s of Legal Environment 2011 IndicatorsGlobal Ranking

Brazil South KoreaStrength of Investor protection 59

th

59
th

Protection of Minority Shareholders interests

64
th

102
nd

Property right 72
th

54
th

Efficiency of legal Framework

71
st

87
th

Intellectual property protection 89

th

44
th

Legal right index 103

th

39
th

Burden of customs procedures 122

nd

47
th

Burden of government Regulation 139

th

108
th

Number of procedures

required to start a business 132

th

73
th

Time required to start a business 135

th

52
th

Source; Above data are acquire from Global Competitiveness Report 2009 2010,http://www.w eforum.org/s?s=Gl

obal+competitiven ess+report