The First Income Tax Return for Expatriates Residing in Brazil
By David Roberto R. Soares da Silva
As of today (March 1, 2021), Brazilian resident individuals have to report their taxes to the Federal Revenue Department by filing their annual tax returns. The deadline for the filing is April 30, 2021, and it applies to expatriates residing in Brazil in 2020.
Expatriates coming to work in Brazil must take some precautions when preparing their first Brazilian annual income tax return. Some mistakes and errors made in the first tax return may cause unnecessary and undesirable effects in the future.
Acquiring Brazilian Residency for Tax Purposes
By David Roberto R. Soares da Silva
Like most countries, Brazil taxes individuals based on their residency rather than citizenship or other criteria. Therefore, determining a person’s residence in Brazil directly impacts that person’s tax treatment and tax reporting obligations.
Exposure of foreigners to Brazilian succession laws, probate, and taxes
By David Roberto R. Soares da Silva
Foreign individuals with property in Brazil may be subject to local succession laws and probate if they hold property in their name or are married to a Brazilian spouse or have Brazilian children.
Compliance in Brazil: Internal Investigations and Disciplinary Measures
Once the complaints have been received through the appropriate channel or even once the company becomes aware of potential violations by other means, it is time to conduct internal investigations to ascertain whether there are grounds for such complaints. If so, the organization has to take action according to the legislation and its internal rules.
Compliance in Brazil: Reporting Channels
Compliance activities are not limited to preventive measures. Responsive and investigative efforts are also part of the compliance framework. These activities aim to identify violations of the Law, internal rules, and ethical principles. After all, despite all the guidance and standardization of a compliance program, there are always those who insist on incurring violations. An organization must investigate these violations and apply disciplinary measures, as appropriate.
Compliance in Brazil: Training
Training is often underestimated in the legal profession, which usually prioritizes the studies, draft of documents, and interpretation of laws.
Compliance in Brazil: Communication
Today we deal with another essential element for a successful Compliance and Integrity Program: Communication. It is a concept that is of the utmost importance for the implementation, development, and maintenance of any compliance program in Brazil.
Communication is, of course, also critical for Risk Management and Corporate Governance.
Compliance in Brazil: The Code of Conduct
The Code of Conduct is essential to any company’s Compliance and Integrity Program. After creating a “tone at the top” atmosphere – which requires full leadership commitment – and conducting all necessary risk assessments, it’s time to draft the Code of Conduct, considering the probability of the risks and their potential impact on the company.
Private Letter Rulings and Taxation of Cost-Sharing Agreements in Brazil
Cost-sharing agreements are not about service rendering. The former only purpose is to allocate costs to legal entities within a corporate group. There is no rendering of services within the corporate group. For this reason, the reimbursement of costs should not be taxable. In Brazil, cost-sharing agreements are not regulated by law, but interestingly, a growing number of private letter rulings shape how Brazilian taxation should apply.
Brazil Considers Extraordinary Tax on Large Corporation Profits
By Priscila Lucenti Estevam Using the Covid-19 pandemic as a justification,…