Increasing globalization has led to a decline in barriers when businesses are looking to expand into new markets around the world. Tax remains one of the central considerations when evaluating a business opportunity. The complexities and intricacies of navigating different tax systems has proven to be a challenge for multinationals that operate in more than one country.
Understanding the uniqueness of different tax systems presents an opportunity for businesses to plan and structure their affairs in the most tax efficient manner.
In this regard, is importante to understand:
- What is the general overview of the tax system?
- Under what type of legal system (i.e. civil law or common law) does the jurisdiction operate?
- Who are the local taxation authorities?
- What are the different business vehicles that are used by non-residents to carry on business, and what are the tax attributes associated with the different business vehicles?
- What are the different methods of financing a corporate subsidiary? Are there specific tax implications associated with financing through equity or debt?
- What are the different types of corporate income tax to which a corporation may be subject? How is the taxable income of a corporation computed and are there any limitations with respect to allowable deductions?
- Are there any transfer pricing rules and withholding tax implications that might apply to cross-border payments? If so, what are the rules and the tax rates that may apply to different types of cross-border payments?
- What payroll taxes, if any, are payable by an employer and employee?
- Are there any indirect taxes such as sales tax, value-added tax or land transfer tax? If so, what is the rate imposed and when are these indirect taxes payable?
As you will see, the tax considerations that arise when doing business in different jurisdictions are numerous and often complex. The BPO INNOVA can assist you in steering through the changing brazilian tax landscape by providing comprehensive tax.
Please do not hesitate to contact us should you require further clarification or assistance.
Written by: Robson Neves