A business entity is the vehicle a person or group of people use to carry on a trade or activity, it is one of the most important decisions to make when starting a business. To get the most out of your business, choose the right structure. The tax consequences from each Read more…
In Brazil there are several regulatory agencies that have authority over an industry or profession in addition to the general government regulation. The goal of these agencies is to regulate and supervise a specific industry in Brazil. There are federal agencies, state agencies and municipal agencies. The most important agencies are the Read more…
Accounting Organizations CPC CPC, short for Comitê de Pronunciamentos Contábeis in Portuguese, is the local organization that promotes the application of the International Financial Reporting Standards (IFRS) in Brazil. The CPC approves standards that are identical to IFRS Standards as issued by the IASB. These standards are endorsed by the CVM for public Read more…
Becoming a CPA is a path many Brazilian students choose. It takes years of education, but it is absolutely a rewarding experience. Only CPAs can sign Financial Statements and some tax reports in Brazil. This article will guide you on the steps to becoming a Brazilian Certified Public Accountant. Bachelor’s Read more…
Tax principles are fundamental concepts that help and guide governments to design and implement laws. They also protect the taxpayers. The tax Principles in Brazil are addressed in the Brazilian Constitution and the Tax Code in articles 145, 150 and 153: Article 145 Ability-to-Pay Principle: Whenever possible, the government should Read more…
The Brazilian tax authorities levy taxes on some types of investment income such as interest, rent on real estate and realized capital gains. Variable Income Tax on Capital Gains (stocks) The Department of Federal Revenue of Brazil, English for Secretaria da Receita Federal do Brasil, levies taxes on realized capital gains. Read more…
IRPF, short for Imposto sobre a Renda das Pessoas Físicas in Portuguese, is imposed by federal government on individual income. States and cities in Brazil do not levy income taxes. An income tax return must be filed every year by business and individuals. Who is required to file a tax return? It will depend on your Read more…
ISS, short for Imposto Sobre Serviços de Qualquer Natureza in Portuguese, is imposed by municipal government on sale of services. It is a sales tax, mostly owed by businesses selling any type of service, from basic to professional services. It is not allowed to consider the tax on the purchase invoices as input tax and deduct Read more…
IPI, short for Imposto sobre Produtos Industrializados in Portuguese, is imposed by the federal government on the shipment of manufactured goods. It is a Value-added tax, mostly owed by manufacturers that turn raw materials, into another product by manual labor or machines, such as chemical, electronic, tobacco, and textile industries. Wholesale and retail companies usually are not subject to IPI. Read more…
ICMS, short for Imposto sobre operações relativas à circulação de mercadorias e sobre prestações de serviços de transporte interestadual e intermunicipal e de comunicação in Portuguese, is imposed by state governments on distribution of goods and specific services such as transportation and communication. It is a Value-added tax, mostly it is owed by manufacturers and wholesale Read more…