TAX AND FINANCIAL INCENTIVES
BRF believes that it must go beyond compliance with tax laws in the countries where it operates, developing long-term relationships with local entities and cooperating for the continuous improvement of the taxation systems in which we operate, always observing our integrity and anticorruption policies.
The management of our tax burden occurs in an integrated manner to BRF’s business strategy, resulting in factors that impact the cost of serving our customers in each locality, including consumption preferences, logistics, availability of inputs, financing conditions , among others. Our goal is to help the company to offer our products with high quality, at a competitive price and accessible to consumers. Our taxation decisions consider the impacts on our diverse stakeholders, including customers, investors, suppliers, employees, governments and civil society, and aim to support the sustainable growth of our business.
In this context, we seek to qualify in the tax incentive programs offered in the legislation of the countries where we operate, in a transparent and collaborative way, due to the alignment of interests in contributing to the socioeconomic development of the communities where we are present, through the generation of direct jobs and indirectly and by offering quality products at affordable prices, thus distributing value to our stakeholders, not only for the collection of taxes, but also for the management of profitable, safe operations that respect the environment and the community where we operate.
In 2015, we became the first company in South America to issue, abroad, 500 million euros of Senior Notes (green bonds). Due on 6/3/2022 and coupon (interest) of 2.75% per annum, we will have seven years to invest in projects with proven environmental impact reduction. During the period, the resource allocation will be monitored annually to ensure its compliance with the title criteria.
The issuance of green bonds enabled the company to increase investment capacity in green projects, focusing on such categories as energy efficiency, renewable energy, sustainable forests, greenhouse gas emission reduction, water management, packaging, raw material or waste management. The successful experience has become a benchmark in the Brazilian market – in which practice tends to be more and more widespread as a way of preparing companies to invest in natural capital.
BRF TAX POLICY
Our tax policy and objective are to comply across all direct and indirect taxes, as a company and employer, with all applicable tax laws and obligations in all countries where we operate, as well as with international treaties and international tax guidelines.
The management of our taxobligations occurs in an integrated manner to BRF’s business strategy, resulting in factors that impact the cost of serving our clients in each location, including consumption preferences, logistics, availability of inputs, financing conditions among others. Our goal is to help the company to offer our products with high quality, at a competitive price and accessible to consumers.