Tax-Optimization in Brazil 🇧🇷 Part 2: Local Companies
Everything you MUST know...
But what if you want to invest or do business locally. Can that be tax-attractive as well?
At first glance, Brazil isn’t exactly an attractive country for your company setup – 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.
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, we’ll cover:
The National Simplified Regime
The Presumed Profit Regime
Special Economic Zones in Brazil
When it makes sense to have a Brazilian Holding company
Let’s start with the national simplified regime, the Nr.1 choice for solo entrepreneurs.