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+1 (888) 647 05 40This is a new investment opportunity - Company registration in Brazil . Please check out the main details regarding this proposal below.
What is included:
Company type: Limited liability company (LTDA).
Cost: on request.
National Currency: Brazilian Real (BRL).
In Brazil, there are two main types of companies – a limited liability company (LTDA) and a joint stock company (SA). Branches and permanent establishments are not often used, as they can work in Brazil only by special ministerial decree.
Local companies pay taxes from their income within and beyond Brazil. Non-resident companies pay taxes on income from trading activities inside country via an agent or representative who is resident or has his permanent establishment.
Permanent establishments are except of taxes if the activity of foreign company is provided out of Brazil.
Income tax is levied on gross operating income. It consists of total revenue minus the cost of goods sold or services provided, minus expenses and losses that are defined by law.
There are two types of taxation for local companies. The “lucro real” and “lucro presumido” methods. The first is usual tax on income. The second is tax paying method that depends on prediction of expected income that should be subject to taxable income.
Both can be payed either quarterly or annually.
Qualified small enterprises with annual gross income not exceeding 4.8 million BRL can choose taxation in a simplified mode for income taxes, VAT, social taxes etc.
Company’s income tax is applied at a rate of 15%. From incomes more than 240,000 reals per year, entities pay an additional tax of 10%. Social security tax at 9% rate is additionally levied too. In total – 34%.
Brazil has vast regulation of profits from controlled foreign companies.
VAT is presented in the form of two taxes on federal and state level (IPI and ICMS). Export is exempt from these taxes.
The company is IPI payer in case of production and importation of goods with different rates depending on type of goods.
ICMS is used with a rate from 4% to 25% in case if company deals with goods’ importing and providing communication and transport services.
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