terça-feira, 9 de fevereiro de 2016

Event on Brazilian agribusiness - New York

I'm not (yet) part of the event below. But his blog likes to talk about purchase of rural land in Brazil (for example, here)

Monday, April 25, 2016
Investment Opportunities in the Brazilian Agricultural Sector
Despite Brazil’s continued political and economic turmoil, agricultural export is one sector where a bright outlook still prevails.
Revenue from agri goods priced in foreign currencies and production expenses denominated in reais are primed to increase margins for producers targeting the export market. Meanwhile, the commodities price bust and a tapering-off of finance capital have pushed asset prices down, representing a possible opportunity for high-risk investors.
Brazil’s farmers have suffered from this, and domestic consumption is also down, meaning prospects for producers targeting domestic markets look equally challenging. But a weaker currency could be a gift for operators selling on the international market, as revenue from agri goods priced in foreign currencies promises to stretch further when it comes to paying domestic expenses in reais.
Agricultural products grew to nearly half of Brazilian exports in 2015, according to Brazil’s Ministry of Agriculture, as the country’s top non-agricultural exports, iron ore and petroleum, fell to a fraction of prices seen just a few years ago. It is believed that the real will depreciate more, thereby generating further opportunities in agriculture. The agriculture sector has a unique competitive advantage with prospects for productivity growth from technological innovation. At the same, time scarce financing sources and a shrinking economy have left sellers hungry for cash, meaning assets could be available at cheaper prices – even if that means taking on the risk of entering a plummeting economy. However, as we know, investors in this sector have a long-term horizon.
Several investors in South American agribusiness predict that the current conditions will give way to a number of high risk/high reward opportunities for investors in Brazilian agriculture. Meanwhile, finance-starved asset holders could create opportunities for investors willing to commit to a long-term play, although at a significant short-term risk. Active investors have already seen asset prices fall. Meanwhile, growers who have been hit hard by falling commodity prices will see increased liquidity this year, driven by the weakening of the real. Brazil right now is a buyer’s market. According to investors involved in recent transactions, one can get significant discounts if willing to invest in local farmland or local companies and pay cash.
But investing in Brazilian farming is not for the faint-hearted and requires significant access to local knowledge. As in many areas, Brazil is not for beginners. That is because the upside potential falls unevenly across different regions and sub-sectors of the country’s agri sector. Major grains, for example, are likely to perform much better than crops that rely on local consumption. The effects of climate change such as El Niño are expected to have a more pronounced effect on some remote northern regions. And the uncertain political situation exacerbating the country’s economic woes makes it hard to predict how future policy decisions will affect the sector.          


300 Madison Avenue
New York City
8:00 a.m. to 8:30 a.m. - Registration, Breakfast and Networking Session
8:30 a.m. to 10:30 a.m. - Presentation, Panel Discussion and Q&A

Registration Information
Member Price: $35
Non-Member Price: $70
Click here to register online.
Click here to download the registration form.

sexta-feira, 29 de janeiro de 2016

Recof-Sped traz simplificação e mais benefícios a empresas exportadoras — Secretaria da Receita Federal do Brasil

Interessante notícia para trading companies e outras empresas brasileiras que compram no Brasil para exportar.

Recof-Sped traz simplificação e mais benefícios a empresas exportadoras — Secretaria da Receita Federal do Brasil:

'via Blog this'

Brazil Canada taxation

I will post an intersting exchange of messages I had with a reader of the blog. Names and details have been edited.

Hi There,

I have a question regarding Brazil-Canada tax policies and would appreciate your advice. 

I, a Canadian, live in Canada with my Brazilian common-law partner (she is a Canadian permanent resident).  She has been offered a contract to provide promotional services to a Canadian school in Brazil (student recruitment). 

We would move together to Brazil to undertake this work for at least one year. 

She would not be an employee of the institution but rather serve as a contractor. 

I am trying to figure out how this would work in terms of taxes i.e. what is practical and what is the most favourable option. 

1. She receive the funds via a company established in Canada and simply carries out the promotional activities in Brazil and reports income only to Canada. 

2.  She establishes a company in Brazil and pays taxes in Brazil only. 

I know we're covered by the double tax treaty but I don't know what is the most favourable option for avoiding tax losses. 

Any suggestions you have for the predicament would be very much appreciated!


John Snow


Dear Mr. Snow, 

If you move to Brazil, you would be subject to Brazilian taxation over personal income, either personal income received from a source in Canada or from a source in Brazil.

In case the payment is made to a company based in Canada, you would only  pay taxes in Brazil in case you distributed dividends from Canada to yourselves, while living in Brazil.

If you do so, you might still have to pay taxes in Canada (I'm not sure if/how Canada would tax the dividends distribution).

If your wife provides services in Brazil, while living here as a representative of the Canadian company, and for a long time, there may be a tax issue regarding the Brazilian municipalities. They may understand that a service tax is due in Brazil. The service tax is usually 5%.

All the comments above are only valid if the payment source is located in Canada, as you mentioned. If the payments were originated in Brazil and directed to a Canadian company, the taxation would be very high (maybe 45%).

Also, in theory there must be a legal arrangement between the Brazilian school and the Canadian entity that is performing the payments to your wife. Otherwise, the whole transaction could be considered a tax evasion scheme.

If your wife were to incorporate a company in Brazil, the company would pay something around 16% of taxes, calculated over the gross revenue. There is also another possible scenario, in which the company would pay 34% of taxes over the dividends.

Finally, there is a third taxation optioin, called SIMPLES, that may allow for a lower tax rate, of about 10% over the gross income. But I would have to check if it is available for your specific case.

If your wife received payment through a Brazilian company, the dividends distributed by the Brazilian company to her would not be taxed in Brazil (this is the general Brazilian rule). But they might be taxed in Canada, in case she remains a tax resident there while providing services in Brazil.

As you can see, in your case there are not much instances of use of the Brazil Canada non-double taxation agreement.  The only case where it would be applicable is if the services were being provided by a Canadian company, invoicing directly to Brazil. In such situation, the treaty could be used either to avoid the payment of the whithholding income tax levied in Brazil (15%) or to obtain a tax debate, in Canada, for the same tax.  This 15% tax is included in the 45% estimate mentioned before.

Sorry for taking so long to answer.



quinta-feira, 3 de dezembro de 2015

quinta-feira, 29 de outubro de 2015


Este blog tem me surpreendido. Posts excelentes.

A gente que trabalha na área acaba se acostumando com a terminologia e não percebe como ela pode ser complicada.

Parabenizo à autora por este post, que explica  a nomeclatura envolvida na cotação de fretes internacionais;


'via Blog this'