1. Accounting & Bureaucracy in Brazil

2. . Country Overview Territory: 8.5 million km2
Population: of 200 million (2013)
GDP: USD 2.25 trillion (2013)
GDP per capita: USD (2013)
Currency: Brazilian Real (BRL)
Capital City: Brasília
Main Business Cities: São Paulo, Rio de Janeiro
26 states, 1 Federal District and over 5500 Municipalities
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Tax & Simulation
HR & Simulation
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3. Dealing with Bureaucracy
Business in Brazil
Why Invest in Brazil?
High Profit Margins
Largest Market in South America
Growing Middle Class
No Tax on Dividends
Dealing with Bureaucracy
Ease of doing business: Brazil ranks 120th of 189 vs. Hungary who ranks 54th (World Bank Data)
Time to open a company: In Brazil it takes 84 days vs. 5 days in Hungary. (World Bank Data) - *Brazil is down from 122 days in 2012.
Time to prepare and pay taxes: Brazil hours vs. Hungary 277 hours (World Bank Data)
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4. . Entry Options Setting up a Company Limited Liability Company
SA / Coorporation
Eireli
Permanent Visas
As a Person (BRL )
As a Company (BRL )
Buying a Company
Joint Venture
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5. Requirements for Entry Options
Proper Planning
Legal Representative of Shareholders
Legal Representative of Company / Administrator
Commercial and Tax Residence
Accountant
Support from a Local Expert
Patience
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6. . Tax System Why such a Complex Tax System?
A complex organization: the Federal Government, 26 Federal States (+DF), and thousands of municipalities, each with legislative powers
There are exceptions to all rules: according to territory, products and recipients
Constant changes to legislations: Federal, state & municipalities can make change one or the other tax (ex IPI, IOF, INSS, ICMS, II, PIS, COFINS)
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7. Municipal, State & Federal Contributions and Taxes
ISS (Service Tax)
ICMS (VAT - Interstate & municipal Tax)
PIS (Social Integration Program Contribution)
COFINS (Social Contribution for Social Security Funding)
IPI (Industrialized Goods Tax)
II (Import Tax)
IE (Export Tax)
IRPJ (Corporate Income Tax)
IRRF (Withholding Income Tax)
CSLL (Corporate Social Contribution)
IOF (Financial Operations Tax)
CIDE (Contribution at the Economical Domain)
FGTS (Workers Fund)
INSS (National Social Security)
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8. . TAX Regimes DIRECT TAXATION Country Profile LUCRO REAL Entry Options
Tax & Simulation
HR & Simulation
Case
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LUCRO REAL
(Real Profit)
Revenue > 78M BRL
Net Margin < 20%
LUCRO PRESUMIDO
(Presumed Profit)
Products > 8% of Rev. Services > 32% of Rev.
Net Margin > 20% .
IRPJ (Cooperate Income Tax) = 15% upto BRL
Or 25% above BRL
CSLL (SOCIAL CONTRIBUTION) = 9%
THE DISTRIBUITION OF DIVIDENDS IS NOT TAXED

9. CLT - Consolidated Labour Laws
General Guide Lines
CLT - Consolidated Labour Laws
CLT - Standard rights and obligations:
13.3 monthly wages a year
Maximum of 44h work week
30 days holidays after a year of work
Right to protection against arbitrary dismissal
Transport to and from work
Maternity (4 months) and paternity leave (5 days)
Occupational insurance
Union membership
No particular agreements can suppress employee’s rights guaranteed by law. However, increasing these rights is accepted, and occurs depending on the union.
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10. . Wage Simulation Cost For Employer BRL 15.800 Official Wage
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Cost For Employer
BRL
Official Wage
BRL
Employee Net Earning
BRL 7.500
Difference between employees net wage and total expense of employer is over 100% .

11. According to the Collective Agreement
Benefits
Ticket Transport
Compulsory
30 days Holidays ater 1 year
Overtime extra pay or time compensation
Ticket Supermarket
According to the Collective Agreement
Ticket Restaurant
Health Insurance
Profit Share Program
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12. . Experience / Cases Not successful endeavors: Impatient / Restless
No previous planning
Adventurers
Does not seek assistance
Successful endeavors:
Previous planning
Previous established clients and contacts
Resources
Adaptation
Persistence
Patience
Reach out for local experts
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Tax & Simulation
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13. . Our Expertise Entry Strategy
Business model, HR Planning, Import&Export Study, Global Study, Tax optimization, Accounting regime advice, Joint venture, Tax Audit and Accounting
Administrative and Financial Management
Banking, Monthly Reporting, Controlling, Revenue management 
Accounting and HR
Bookkeeping, issuance and calculations of tax notes, income statements, annual reports, HR obligations
Legal Representation, Domiciliation
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14. . Our References Country Profile Entry Options Tax & Simulation
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15. Thank You & Welcome to Brazil!