A few short weeks ago, legendary Brazilian football club Flamengo came from behind to defeat Argentina’s River Plate 2 to 1 and lift the Copa Libertadores trophy in victory. The streets of Lima, Peru, site of the cup final, were filled with Brazilian fans wearing the traditional black and red Flamengo colors.
This latest exciting chapter in the long and storied history of Brazilian football is matched perhaps only by the excitement many international corporations currently have regarding investment opportunities in the country.
Ok, maybe the football fans are a bit more hyped up… Why are multi-Latin corporations almost as excited as Flamengo fans in Brazil? Let’s explore.
Why International Companies Want to Invest in Brazil
Considered the largest economy in Latin America and the eighth-largest in the world, Brazil is a top target globally for foreign direct investment (FDI). In fact, according to data from the Brazilian Central Bank, Brazil received almost $50 billion in FDI in 2018 alone.
Many of the world’s largest corporations are eager to tap into Brazil’s diverse range of industries and domestic market of over 200 million potential customers. However, the country’s complex tax regulations are making it difficult for many international companies to execute their business plans and achieve success.
What Challenges to Tax Compliance Exist in Brazil?
Brazil is recognized around the globe as having one of the most complicated tax systems in the world.
One of the many challenges international corporations must navigate is following the Brazilian government’s rules for classifying services and inventory items. Different taxes are applied to services and goods and tax rates also vary depending on which state within Brazil business is conducted.
In addition, tax regulations change frequently, leaving corporations desperately trying to keep up with the latest requirements. In fact, just last month, Brazil’s federal revenue secretary announced that a new tax reform proposal will be submitted to Congress before the end of the year — so even more change could be on the way!
How to Overcome Tax Challenges in Brazil
Too many large corporations dedicate hundreds or even thousands of hours of labor in order to achieve tax compliance in Brazil. The LatamReady SuiteApp automates and simplifies complicated back-office accounting requirements in Latin America, allowing companies to devote valuable resources on strategies to grow their revenue.
From accurate inventory item classification to legal ledgers, E-invoicing and more, our innovative tax compliance solution unlocks the full power of Oracle NetSuite for multi-Latin corporations.
The LatamReady SuiteApp is the only native Built-for-NetSuite SuiteApp that can deliver full tax compliance in 18+ Latin American countries, including Brazil.
Success in Brazil does not have to be contained to the football pitch. The largest multi-Latin corporations that want to score goals in the international marketplace partner with LatamReady. Visit www.LatamReady.com or call one of our sales reps at +1-786-600-2641 to set your business on the path to success.
Learn the Latest Tax Compliance Developments in Latin America