The tax environment in Brazil is complex and laden with uncertainties and represents a challenge even for the most fit and advised businessmen, domestic and foreign alike.
Velloza Advogados has a team of lawyers with extensive experience and qualifications in the tax and financial area that offer clients a dynamic and thorough tax advisory advice. We adopt in our method of work a multidisciplinary and business vision, seeking to be effective in dealing with the uncertainties of Brazilian tax law. Proposed transactions are thoroughly addressed under the ramifications of law that bear upon them by weighing alternatives and solutions in risk scenario exercises, all in order to facilitate decision making by company management.
In all cases, we work hard to provide our clients with the best strategic solutions aiming at tax efficiency, seeking to clearly and objectively measure their risks and identify/aggregate elements that value/emphasize the substance of the operation, to avoid questionable tax practices and/or to enhance grounds in any tax assessment.
Toward this end, we work in concert with the Administrative and Judicial Tax Litigation teams, closely monitoring the most recent decisions and trends of CARF and the high courts to ensure our clients receive guidance aligned with the majority position of the courts.
We work closely with the market and its practices, maintaining close contact with leading associations and federations in the business, tax and financial and capital markets, such as the IFA (International Fiscal Association), ABBI (Brazilian Association of International Banks); ANBIMA (Brazilian Association of Financial and Capital Markets Entities), in which we have an active participation, discussing improvements and innovations in the rules in Brazil and in other jurisdictions.
In our practice we address the following matters:
• Corporate direct taxes (IRPJ, CSLL and PIS/COFINS) and corporate taxation systems (Real, Presumed and Arbitrated Profit, and Cumulative and Non-Cumulative Regimes, respectively), including taxation of the following entities:
· Bank and non-bank financial institutions and other financial market participants;
· Factoring companies;
· Companies that provide services, including providers of acquisition services and other participants in means of payments and operations with credit cards;
· Technology companies, Fintechs.
• Taxes on transactions carried out by financial and insurance entities, among which: IOF/Credit, IOF/Foreign Exchange, IOF/TVM and IOF/Insurance;
• Taxes on remittances of foreign currency and foreign exchange operations, such as: IRRF, CIDE, IOF/Foreign Exchange, PIS-Import, COFINS-Import, ISS-Import;
• Taxation of transactions involving the payment of commissions, interest, dividends, royalties and other amounts to companies domiciled abroad or with permanent establishment in Brazil;
• Taxation of transactions involving the payment of commissions, interest, dividends, royalties and other amounts by companies domiciled abroad to companies domiciled in Brazil;
• Transfer Price and Sub-Capitalization Rules;
• Taxation of software transactions, copyrights, electronic games;
• Tax aspects of M&A transactions, Corporate and financial reorganization structured in Brazil and abroad;
• Taxation in the Brazilian Financial and Capital Markets by resident and non-resident investors;
• Tax regime applicable to the various types of investment funds;
• Taxation of direct investments made by foreigners in Brazil;
• Tax regulation of Brazilian investments abroad carried out by legal entities, including Brazilian CFC rules, taxation of income earned abroad, possibility of offsetting income tax paid abroad;
• International Treaties and Conventions, as well as other instruments of international tax law;
• Compliance by entities in Brazil with BEPS and related advisory obligations, such as: (i) Country-to-Country Statement (DPP); and (ii) identification of financial accounts in accordance with the Common Reporting Standard (CRS).