Avoiding Tax Pitfalls in Brazil
When investing in Brazil, you’ll need to be intimately familiar with Brazil’s tax laws.
That’s not exactly an easy task, either. Brazilian tax laws can be confusing to those who don’t have expertise in the area. It takes some study and an adaptive knowledge in order to ensure that all the latest tax codes and regulations are being adhered to and followed to the letter.
As the Brazilian market grows and develops, these three areas pose substantial threats to newly organized foreign owned businesses:
- Tax and Labor Laws. These laws can be convoluted and confusing to the average outside investor or corporation. For both domestic and international companies, the tax laws and labor laws cause the greatest amount of concern.
- Corruption and Security Issues. Even the most business savvy can get taken for a ride if they don’t know who they’re dealing with. As much as we’d love to believe that everyone is an honest, straight-shooter, that simply isn’t the case, particularly in a developing market. Make sure you do your due diligence.
- Import Regulations. Getting goods into the country can be a difficult task due to legal issues and intricacies of not only importing, but also duties and tariffs. Make sure you get the necessary governmental permissions to get your products into the country.
Avoiding these pitfalls with the help of those experienced in corporate and tax laws is by far the best way to enter into the Brazilian market. There may be risks, certainly, but the opportunities and benefits for international market growth and profit are incredible.
Overall, if you’re interested in making your company work for you in Brazil, there are plenty of great and legitimate opportunities to do just that. The best way to do business in Brazil is to get someone who knows the law and knows how to protect your interests on your team.