How to avoid tax problems in Brazil?

The Brazilian tax and fiscal system is complex and often creates doubts among managers. From inadequate accounting, tax problems in Brazil can arise and compromise the financial health and success of the company as a whole.

For this reason, GESCON selected important information to help you avoid tax problems in Brazil. Check out!

What are tax problems in Brazil?

When a company is opened in Brazil, the entrepreneur will have a series of responsibilities that aim to regularize the activity, professionalize the performance and provide a series of advantages to the company.

Among the main responsibilities, we highlight the payment of taxes, which must be made to the government according to the characteristics of the company and according to the chosen tax regime.

What are the most common tax problems in Brazil?

• Paying taxes with arrears
• Failure to adapt to changes in legislation
• Choosing the wrong tax regime

And how to avoid tax problems in Brazil?

Anyone who wants to stay away from tax problems in Brazil needs to pay attention to some tips that aim to improve tax management and organization, putting the company in a safe situation.

Make preventive planning

Tax obligations occur most of the time monthly, others are annual. However, it is possible to predict costs with fees and taxes, based on average revenue, to be able to do financial planning.

So, it is possible to avoid the lack of capital when it comes to paying taxes and then having to pay fines and interest that are high and can destabilize a business.

A calendar of monthly obligations is also essential to contribute to good planning, as it is possible to follow all deadlines.

Perform good tax planning

Tax planning assists in managing the payment of fees and taxes. Thus, there is a legal possibility to reduce the costs of the tax burden.

Through tax planning it is also possible to choose the tax regime that is best for the business, bringing numerous advantages to the company.

Follow good tax management practices

To avoid tax problems, it is essential to adopt management practices that avoid headaches with the IRS and the Ministry of Labor.

The accountant in this case plays an important role. It is he who can help in cases of doubts and difficulties. In addition to it, it is interesting to have a culture of fiscal compliance.

Periodically conduct internal audits

Internal audits aim to evaluate the accounting, tax and labor areas. Also called preventive audits, they help to guarantee the quality of services and to identify early situations that may harm the business.

Store tax documents correctly

If the IRS goes to your company in an eventual inspection it is essential that you provide the requested information.

Therefore, the storage of tax data is another way to avoid problems. Technology helps to keep this information safe and easy to access when needed.

What are the consequences of tax problems for companies?

The main consequences that companies suffer due to fiscal problems are financial. Having to pay fines, interest and accounting and legal costs to regularize the situation can greatly compromise the financial health of the business.

Do you want to avoid tax problems in Brazil? We can help you!

GESCON’s strategy is based on services tailored to the unique needs of our customers.

We always try to maintain direct and close contact with our customers. We are proud to say that we work on building relationships that allow us to maintain a receptive and supportive attitude to meet any demand.

Our team of specialized professionals has the capacity to attend your company in different demands, always thinking about the individuality of the business.

With GESCON’s accounting advice, you don’t have to worry about the administrative bureaucracy involved in accounting for a project. Thus, you can dedicate yourself exclusively to other activities and goals of the company.

So get in touch with our team and talk to us! Access our website today and find out how we can help you boost your business in Brazil!