Economic conditions and a high unemployment rate make this the perfect time to invest in Brazil. Brazil is one of the main economies that receive foreign direct investment. However, doing business there is not easy.

1. DOING
BUSINESS
INBRAZIL
A FOUNDATION IN THE
LATIN AMERICA REGION

2. • World’s 7th largest
economy
• Strongest economy in
South America
• Population of 204
million
• 11th largest export
market for US goods

3. There is high growth
potential in Brazil. Sao
Paulo was ranked 12th
in Compass’ 2015 Global
Startup Ecosystem Ranking.
197 of the Fortune 500
companies are direct
investors in Brazil.

4. WHY BRAZIL,
WHY NOW?
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5. Economic conditions and a high
unemployment rate make this the
perfect time to invest in Brazil.
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6. Brazil is one of the
main economies
that receive foreign
direct investment.
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7. However doing business
there is not easy.
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8. Brazil is ranked 116 out
of 189 countries in the
World Bank’s Doing
Business ranking.
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9. It is expensive, has an ineffective tax system
and there is excessive bureaucracy involved
in the incorporation of companies and in
registering properties.
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10. Even with its challenges,
Brazil remains an
opportunity that is hard
to resist. Its economy is
well positioned globally
thanks to its size and
interaction with other
economies.
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11. When planning your move into
Brazil, there are two main entity
options to consider.
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12. If you’re a larger company, you’ll likely want
to establish a Corporation (Sociedade
Anonima).
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13. Medium and smaller sized companies
usually establish a Limited Liability
Company (Sociedade Limitada).
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14. Branches in Brazil are almost never used.
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15. Due to complex Brazilian Central
Bank rules, opening a bank account
can be a painful process.
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16. Inflow and outflow of funds must be registered
with the Brazilian Central Bank and invoices
must be issued through official channels.
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17. The Brazilian tax system can be highly
complex. Depending on what operations
you will be carrying out, you can expect
to encounter a number of different taxes.
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18. Corporate Income Tax (IRPJ and CSLL)
Triggering event: Income.
Rate: Combined rate of 34%.
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19. Import Duty
Triggering event: Import of goods into Brazil.
Rate: Varies based on the classification of
goods imported.
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20. Turnover Taxes
Triggering event: Import of goods and services
and gross revenues.
Rate: 6.65% under the cumulative regime and
9.25% under the non-cumulative regime.
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21. Federal VAT (IPI)
Triggering event: Import transactions and output
from the industrial establishment.
Rate: Varies based on the classification of
goods imported.
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22. Contribution for the Intervention
in the Economic Domain
Triggering event: Payments abroad related to
the transfer of technology; technical services
and assistance; and royalties.
Rate: 10%.
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23. Financial Tax (IOF)
Triggering event: Insurance; credit and currency
exchanges; and securities transactions.
Rate: varies depending on the transaction.
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24. State VAT (ICMS)
Triggering event: Import and domestic
movement of goods.
Rate: Between 17% and 19% in case of
intrastate transactions and 7% or 12% in case
of interstate transactions.
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25. Municipal Tax on Services (ISS)
Triggering event: Import of services and domestic
rendering of services.
Rate: Between 2% and 5% depending on the kind
of service rendered and the location of the service
importer/provider.
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26. Brazil also has some important
employment considerations for
companies expanding into the country.
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27. Generally there are high payroll costs and
worker-friendly labor laws. Terminations
can be lengthy and costly.
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28. Although not mandatory, contracts are
highly recommended.
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29. Brazil is, undoubtedly, an attractive destination
for businesses looking to expand internationally.
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30. Ensure that you understand and comply with
all applicable laws to reduce financial and
reputational risks and take full advantage of
Brazil’s many opportunities.
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31. If an expansion into Latin America is on
your radar, make sure you listen to our
Webinar on Doing Business in Brazil.
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