Address:
Av. Marques de São Vicente, 230 - Conjunto 1220, Barra Funda - São Paulo, SP - Brazil, 01141-010
Phone:
+55 11 2386-7976
Email:
Tax consulting for foreign companies in Brazil is advisory work that helps you choose a structure, a tax regime and a pricing model before decisions become expensive. It is different from monthly accounting: accounting records and files what happened, consulting plans what should happen.
What does tax consulting cover?
- Choice of entry structure and tax regime, such as Simples Nacional, Lucro Presumido or Lucro Real
- Tax impact of intercompany services, royalties, loans and dividends
- Withholding taxes on payments abroad and the use of tax treaties
- Evaluation of tax incentives and benefits
- Preparation for the tax reform and its new consumption taxes
- Review of tax risks before an audit or a due diligence
When should a foreign company hire a tax consultant?
- Before opening a company or hiring the first employee
- Before signing intercompany agreements
- When revenue grows and the current tax regime may no longer fit
- When the rules change, as with the tax reform
- After receiving a notice or an assessment
How is it different from accounting and tax compliance?
| Topic | Accounting and compliance | Tax consulting |
|---|---|---|
| Main goal | Record, calculate and file | Plan and decide |
| Rhythm | Monthly and annual | By project or decision |
| Output | Filings, books and reports | Opinion, simulation and recommendation |
| Risk it reduces | Fines and late filings | Overpaying taxes and wrong structure |
Read more on the main taxes companies pay in Brazil and on Brazil’s tax reform before a first meeting.
How should you prepare for a consulting project?
- Describe your business model, prices and flows between group companies
- Share contracts and financial forecasts for the next 12 to 24 months
- Define the decision you need to make and its deadline
Frequently asked questions
Is tax consulting expensive? It is usually priced by project or hours. The cost is often small compared with the tax at stake in a structuring decision.
Do I need consulting every year? Not always. Most foreign companies use it at key moments, such as entry, growth and regulatory changes.
Can my accountant do it? Some can, but advisory work needs specific experience with foreign groups and cross border rules.
Gescon’s Business Consulting team supports foreign companies from entry to growth in Brazil. Contact us for a first assessment of your case.
