Tax Considerations for Starting a Business in Brazil
One of the most important considerations to starting any business is tax code compliance. US companies in Brazil must ensure compliance with US tax codes, as well as Brazilian tax laws and codes. Before you pack your bags and head to beautiful Brazil, take a moment to consider the tax concerns you will face.
Recently, Brazil attempted to simplify the tax code, but, as with taxes in the US, this proved more difficult than anyone could have anticipated. When you do business in Brazil, you must be aware of federal and state taxes, sales taxes, and local municipal taxes. Many of these indirect taxes can be difficult to navigate on your own. An accountant who understands the intricacies of Brazilian tax laws can help you ensure that your new company is in full compliance from day one.
Another difficulty with taxes in Brazil is the scheduling for these taxes. In the US, taxes will run by fiscal month, quarter, and year, making it easy to determine sales and profits for any given time frame. Brazilian tax schedules do not follow the same calendars that you are used to, so you will need to make sure that you are aware of all deadlines, to ensure timely and accurate tax filings.
US companies in Brazil can enjoy the benefits of this country’s growing business economy, but you will need to make sure that you use an accounting service that understands the complex tax codes of this new business climate. The right accounting service will allow you to be compliant with the law, while increasing profits every quarter.