Brazil Accounting and Tax Services
- Many international clients engage Tetra Consultants for Brazil accounting and tax services. Tetra Consultants will timely complete your firm’s financial statements, corporate tax returns and manage auditors on your behalf and without the need to travel. It is important to meet the deadlines stipulated by the Special Department of Federal Revenue of Brazil. Failure to comply will result in late penalties and fines. Contact us now to find out more about Tetra Consultants’ Brazil accounting and tax services. Our team of experts will revert within the next 24 hours.
- By engaging Tetra Consultants for Brazil accounting and tax services, you can reduce overhead costs while being ensured of timely reporting and filings. Our accounting team will provide you with an explanation on all the required deadlines and expectations before the start of the engagement.
- Thereafter, our team will prepare the required fillings in advance to ensure we meet all stipulated deadlines. Tetra Consultants will send you a weekly or bi-weekly update, ensuring that you are aware of upcoming deadlines.
Annual reporting requirements in Brazil
- In accordance with the Special Department of Federal Revenue of Brazil, it is mandatory for corporate entities partaking in businesses within the jurisdiction to file annual tax returns by the last business day of July following the fiscal year ending on 31st.
- The annual tax return should contain consolidated monthly results of the previous calendar year and the supporting documents must be retained for a minimum of 5 years.
- Corporations who failed to meet the stipulated deadline will be subjected to a late filing penalty on the tax due. Taxpayers who were unable to resolve outstanding tax payments in due time will be subjected to penalties as well depending on the degree of non-compliance.
- Taxpayers in Brazil are subjected to penalties amounting to R$1,500 per month for untimely filing of federal tax returns. In the event where the information is flawed or incomplete, a 3% penalty on the value of the financial transaction will be imposed.
- Furthermore, a standard penalty of 0.33% a day, with a limitation of 20% for late payments of tax will be applicable for non-compliant taxpayers in Brazil.
Brazil Corporate Tax Rates
- Resident companies in Brazil are subjected to a Corporate Income Tax rate of 15% on annual taxable income under Brazil’s Tax Regulations.
- In addition to the Corporate Income Tax, corporate entities with an annual income exceeding R$240,000 are also subjected to a 10% surcharge on annual taxable income.
- All legal corporations and entities are subjected to a Social Contribution on Net Income (CSLL) at a tax rate of 9% on profit become income tax. For business entities such as financial institutions and other specified entities will be taxed at a 15% tax rate instead.
Brazil Audit Requirements
- A statutory audit by a certified auditor duly registered with the Brazilian Securities and Exchange Commission is mandated.
- Audits are done electronically in Brazil and the Brazilian legislation mandates corporate taxpayers to provide the necessary information electronically as well.
- The Brazilian tax authorities would generally carry out audits for regular taxpayers up to 5 years after the end of the fiscal year.
Brazil Value-Added Tax (VAT)
- Brazilian taxes are enforced and levied at multiple levels including federal, state and municipal levels. IPI refers to the federal excise tax implemented on the manufacturing of goods and import of goods into Brazil. The average IPI tax rate applicable to business entities is 20%.
- Similarly, ICMS is a state Value Added Tax levied on the circulation of goods and provision of interstate and intermunicipal transportation and communications services. The ICMS tax rate varies over a range of 4% to 25%
Brazil Withholding tax
- According to Brazil’s Tax rules and regulations, Brazilian registered business entities are obligated to withhold a percentage of certain payments made to non-residents. The withholding tax compliance falls under the responsibility of the Brazilian business entity. Generally, Brazil sourced income paid to non-residents is subjected to a 25% withholding tax rate unless otherwise specified.
- Generally, there is no withholding tax on dividends paid by a Brazilian corporation to a non-resident shareholder.
- Royalties paid by a Brazilian corporation to a non-resident are subjected to a 15% withholding tax rate unless otherwise specified under tax treaties.
- Interest paid by a resident Brazilian company to a non-resident is subjected to a 15% withholding tax rate unless otherwise specified under tax agreements. Moreover, interests paid to residents in a tax haven will be subjected to a 25% withholding tax rate.
Contact us now to find out more about Tetra Consultants’ Brazil accounting and tax services as well as how to register company in Brazil hassle-free. Our team of experts will revert within the next 24 hours.
