THE EFFECT OF THE ADOPTED TAX TREATMENT ON THE PROFITABILITY OF FORESTRY.

Brazilian tax matters are characterized by complexity, diverse legislation, and difficulties in complying with the requirements imposed by tax authorities. This article aims to elucidate the impact of the adopted tax treatment and its viable possibilities in the management, accounting, and tax aspects on the profitability of Pinus forestry cultivation in southern Brazil. It combines three types of producers with three different groups of management regimes, encompassing a production scale ranging from 10 to 50 hectares. Five distinct taxation possibilities and their variations were utilized based on an analysis of cash flows and financial feasibility indicators for forest projects. Situations involving two management regimes with two thinning cycles and corporate tax treatment, assuming profits from clear-cutting on a planting scale of at least 25 years old, yield the most favorable economic returns. [ABSTRACT FROM AUTHOR]