From my twitter feed;
quarta-feira, 12 de abril de 2017
domingo, 9 de abril de 2017
Brazil: Tax is not the issue. Variations, complexity and indirect cost to manage it it the true grit. | Carlos Frohlich | Pulse | LinkedIn
A very interesting article about the connection between taxation and IT in Brazil.
I`m learning that this is becoming a big thing. Some of my clients already pick accountacy firms based on the firm`s ability to cope with their ERP systems.
Link to the original source.
Brazil: Tax is not the issue. Variations, complexity and indirect cost to manage it it the true grit.
It has been a while since I have started to work for multinational companies with operations in Brazil.
For IT consultants there is a common ground when the subject is taxes. Goosebumps would describe this feeling. Most of the international teams do not realize how complex Brazilian taxes can be.
Few tributes… so what?
There are indeed few tributes but as you will see bellow, there are a wide range of creative variations and many special categories. Exceptions everywhere. Indeed a quite complex environment to manage but not only. There are also many different mandatory reports to allow the Brazilian government to cross those information clusters. Government considers not only the data from one source but through big data, it crosses data from vendors, customers and similar companies to build the big picture about an industry, about a market segment and even about the company and its peers. This strategy is about not only the source (provided by the company) but also the exchanged data between different companies. The best example is the mandatory NFe (electronic invoice) that allows Brazilian Government to control and track down electronically any fiscal information about goods logistics.
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Eingestellt von Adler Martins um 10:58
The ranking has been published by "Leaders League".
I basically agree with their evaluation.
AMCHAM is located in my city (Belo Horizonte) and I know them very well.
CAM-CCBC (the chamber from the Brazilian-Canadian chamber of commerce) and AMCHAM chamber are also very good.
They are on the top of the list. This matches the feedback I get from clients and colleagues.
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Eingestellt von Adler Martins um 10:52
quarta-feira, 22 de março de 2017
sábado, 11 de março de 2017
quarta-feira, 8 de março de 2017
Pursuant to Art. 18 of Statute 9.430/96, the Transfer Pricing regime applies to the import and export operations of goods and services between related legal entities.
Under Art. 23 of Statute 9.430/96, the following should be considered connected or related to a Brazilian entity:
a) their headquartes located abroad;
b) their branch, if located abroad;
c) the individual or legal entity, resident or domiciled abroad, whose ownership interest in its capital stock characterizes it as its parent or affiliate company, as defined in paragraphs 1 and 2 of art. 243 of Statute 6.404/1976;
d) a legal entity domiciled abroad that is characterized as its subsidiary or affiliated, as defined in §§ 1 and 2 of art. 243 of Statute 6.404/1976;
e) a legal entity domiciled abroad, when it and the company domiciled in Brazil are under common corporate or administrative control or when at least ten percent of the capital stock of each one belongs to the same individual or legal entity;
f) a natural or juridical person, resident or domiciled abroad, who, jointly with the legal entity domiciled in Brazil, holds a shareholding in the capital of a third legal entity, the sum of which is characterized as controlling companies or affiliates thereof, in the form Defined in §§ 1 and 2 of art. 243 of Law 6404 of December 15, 1976;
g) the individual or legal entity, resident or domiciled abroad, that is its associate, in the form of a consortium or condominium, as defined in Brazilian law, in any enterprise;
h) a natural person residing abroad who is related to or related to the third degree, spouse or companion of any of its directors or of its partner or controlling shareholder in direct or indirect participation;
i) the individual or legal entity, resident or domiciled abroad, that enjoys exclusivity, as its agent, distributor or concessionaire, for the purchase and sale of goods, services or rights;
j) an individual or legal entity, resident or domiciled abroad, in which the legal entity domiciled in Brazil enjoys exclusivity, as agent, distributor or concessionaire, for the purchase and sale of goods, services or rights
With the measure, the legislator intends to ensure, in particular, that transactions between legal entities belonging to the same economic group are similar to those practiced in the domestic market, avoiding irregular remittances abroad or irregular collection or deduction of income tax.
domingo, 5 de março de 2017
This article mentions that one of the main risk in cross-border e-commerce transactions is
"Loss of revenue from unanticipated fees and fines or improperly calculating the cost of customs"
This is certainly true for Brazil. Exports conducted by mail or courrier to clients in Brazil are subject to heavy taxation. In some case, the cummulative taxes can reach over 100% of the value of the merchandise. Not to mention that customs procedures can easily take 60-90 days to be performed (there is a lecture with the cost explanation here)
This is why so many companies choose to incorporate in Brazil in order to conduct business here. The taxation does not get that much lower, but at least is becomes more predictable.
Please check the original article: Companies are struggling to keep up with the fast pace of international e-commerce - Trade Ready:
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Eingestellt von Adler Martins um 12:20