Your Delaware company: Taxed in Brazil this year?
Even if you never touched the profit.
Your Delaware company: Taxed in Brazil this year?
Even if you never touched the profit.
The moment you become a Brazilian tax resident—permanent visa or 183+ days in the country—the Receita Federal taxes your controlled foreign corporation’s profits annually, whether you distribute them or not.
What counts as ‘control’ of a foreign company?
Owning >50% of shares or voting rights, or having de facto power to decide the company’s results—even a minority stake can trigger it.
December 31st
Every year, your CFC’s profits are taxed in Brazil on this date—no distribution needed.
On $100,000 in offshore profit, you’d owe up to $27,500 in Brazilian income tax—even with zero transfers to a Brazilian account. The progressive rate reaches 27.5%.
Dica
Don’t let the tax catch you off guard. Review your foreign company’s 2025 balance sheet now, convert profit to BRL, and prepare the proper declaration before the April filing deadline.
✘ Mito
Myth: I can defer tax until I take dividends from my foreign company.
✓ Verdade
Truth: After Law 14.754/2023, profits are taxed annually on December 31, regardless of distribution.
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Brazil doesn’t wait for you to bring the money home—it taxes your offshore profits at the close of each year.
Imagine the relief of knowing you’re fully compliant—no surprise bills, no panic.