As you may know, Brazil is very complex when it comes to tax compliance. What makes it so difficult to be compliant to the Brazilian tax compliance system is the unique laws that are required per state. Each of them ask for different documents and there is no standard for the entire country. That’s why, if you have subsidiaries in Brazil, you must be aware of two situations: In Brazil, there is no standard tax compliance system for their states and secondly, every state is available to establish their own regulations and requirements. Are you an international corporation using NetSuite owning subsidiaries in different Brazilian states? Today we will go more in depth the issue to safeguard the interests of your company in the Brazilian space. Keep reading!
Yes, as you may have heard that Brazil is the most complex in the region when we talk about tax advice…
Tax advice is a big one when we talk about international organizations. If a foreign company ventures out to Brazil they obviously have a lot of questions. They hire an accountant that says A, and then they hire another accountant that says B… that’s a very common situation in Latin America, especially when things are complicated. So tax advice and where to get it, specifically for Brazil, is extremely important.
Do you think that taxes in the US and in Brazil are the same?
If you think so then you’re completely wrong. You have to think different taxes in different states, different taxes within Brazil itself, service taxes, all sorts of different kinds of taxes. The way it’s structured is very different, the way taxes are calculated depends on a lot more factors than in the US, and those factors are very dynamic and can change. So having that set-up inside of your NetSuite environment in the right way is critical.
Here is a piece of advice for international corporations NetSuite users having subsidiaries in Brazil
A corporation could arrive in Brazil and face language barriers as Portuguese, Spanish and English are all different, with that said, in English, services in English are a great advantage for our customers. For LatamReady’s customers in Brazil, we had to connect withholding tax rates to NetSuite. Withholding tax rates in that specific industry for those clients are always changing, so we decided to look for a connection with a local withholding tax rate supplier and connect NetSuite in order to get that information online.
Do you still struggling with all the tax compliance thing in Brazil?
Don’t look any further!
LatamReady is the #1 Tax Compliance solution within NetSuite for all big corporations using NetSuite. That’s why, to be aware of the changes that are happening regarding tax compliance not only in Brazil but also Argentina, Mexico, Colombia, and many other countries in the Latin American space please check http://www.latamready.info. Or feel free to call one of our sales reps at +1-786-600-2641.