Business misconceptions of Brazil | Tax Compliance
|The taxation system in Brazil is complex, with over sixty forms of tax. Historically, tax rates were low and evasion and avoidance were widespread.|
Tax advice is a big one when we speak for international organizations. If a foreign company ventures out to Brazil they obviously have a lot of questions. We’re not going to lie, if you plan to control the issue on taxes yourself, there will be miscommunication.
Tax Advice in Brazil
Companies would usually hire accountants and this is what you may experience...They hire an accountant that says A, and then they hire another accountant that says B… confusion is unavoidable! This doesn’t only happen in Brazil, it’s a very common situation in Latin America, especially when things are complicated. So tax advice and where to get it, specifically for Brazil, is extremely important. You need the experts who dedicate themselves to this.
Do you think that taxes in the US and in Brazil are the same?
If you think so then you’re completely wrong. You have to think different taxes in different states, different taxes within Brazil itself, service taxes, all sorts of different kinds of taxes. The way it’s structured is very different, the way taxes are calculated depends on a lot more factors than in the US, and those factors are very dynamic and can change. So having that set-up inside of your NetSuite environment in the right way is critical.
|Taxes that affect equity in Brazil have an insignificant collection, and the taxes on income remained virtually the same share of the total revenues, from 38.80% on average to 41.14%.
What else can occur?Apart from miscommunication of tax and legal advice, an international corporation can face language barriers as Portuguese, Spanish and English. Multi-lingual tax experts are what you need!
What have we done in Brazil?Here is a small example. For LatamReady's customers in Brazil, we had to connect clients withholding tax rates within NetSuite. We understand that withholding tax rates in that specific industry for those clients are always changing, so we decided to look for a connection with a local withholding tax rate supplier and connect NetSuite in order to get that information online. We have a presence in all Latin American countries, we have strong relationships with local legal bodies to get our solution compliant and updated constantly.
Don’t struggle in Brazil any longer!LatamReady SuiteApp is the #1 Tax Compliance solution within NetSuite for all big corporations with businesses in Latin America. We have the key to your growth in Brazil, Mexico, Argentina, Colombia and 18 more countries in the region.
You need the experts who can handle your situation now.
Get the solution at www.latamready.com or call us to expand your company successfully at +1 786 600 2641