Are You Losing 34% of Your Profits to Brazil?
The hidden tax traps for foreign business owners
Are You Losing 34% of Your Profits to Brazil?
The hidden tax traps for foreign business owners
Brazil uses a strict substance-over-form approach. If you have a real connection—an office, agent, or just 183 days in the country—you could be taxed like a local company.
34%
Combined IRPJ and CSLL rate on profits over R$20k/month
Fixed office in Brazil
Dependent agent signing contracts
183+ days of services in 12 months
Spend more than 183 days in Brazil in any 12-month period? You automatically become a tax resident. Your worldwide income, including profits retained offshore, becomes taxable—even if you never bring the money into Br...
Can I just keep profits in my foreign company?
No. Brazil's CFC rules tax you on the company's profits directly, even if undistributed.
“
The fact that you never bring the money into Brazil does not shield you from tax.
Review your days in Brazil
Assess PE triggers immediately
Seek specialized legal advice
Don't let tax surprises sink your business. Protect your global profits now.