Tax-Optimization in Brazil π§π· Part 2: Local Companies
Everything you MUST know...
Last time, we talked about optimizing your personal taxes in Brazil.
But what if you want to invest or do business locally. Can that be tax-attractive as well?
At first glance, Brazil isnβt exactly an attractive country for your company setup β after all, with an effective corporate tax of 34% including the Social Security Tax and surcharge, the headline rate is one of the highest in the world.Β
The 3 indirect taxes (Tax on Circulation of Goods and Services, Services Tax, and Industrialized Products tax) also add to the complexity of running a Brazilian company. In most major countries, you have a single VAT.
However, Brazil offers interesting options for investors and entrepreneurs, be it with a small or a large business.
Today, weβll cover:
The National Simplified Regime
The Presumed Profit Regime
Special Economic Zones in Brazil
When it makes sense to have a Brazilian Holding company
Letβs start with the national simplified regime, the Nr.1 choice for solo entrepreneurs.