Tax and accounting review for the identification of potential tax credits
Brazil’s complex tax system can give rise to situations in which a company accumulates tax credits (whether through transactions or negative balances). In such cases, the company may be entitled to tax credits that allow for their utilisation.
At UR Global, we carry out an analysis of the company’s accounting and tax position with the aim of identifying whether such credits exist or not. Once detected and confirmed, UR Global is responsible for the recovery, management and offsetting of those credits.
Legal support in the Brazilian market
Protection before entering the Brazilian market, whether through a wholly owned company or by participating in companies with local partners, requires careful legal preparation in order to understand the corporate and general legal aspects and protect the company’s business interests.
At UR Global, we provide support with every advisory and preparatory aspect required for safe participation in the Brazilian market. This includes drafting articles of association that protect the partners’ interests; reviewing and/or drafting shareholders’ agreements that regulate the company’s operation; and reviewing and/or drafting contracts with clients, suppliers and employees, always in accordance with Brazilian legislation. We can provide one-off support for specific actions or ongoing support throughout the company’s activity, responding to the numerous legal queries and requirements that arise.
Employment Aspects Study
The Brazilian employment framework is one of the factors that requires particular attention from foreign investors. Governed mainly by the Consolidation of Labour Laws (CLT), the system is characterised by a high level of regulation and worker protection, resulting in significant obligations for companies.
One of the most relevant aspects is the difference between nominal salary and total employment cost. In Brazil, the cost of an employee includes additional charges such as social security contributions (INSS), deposits into the Length-of-Service Guarantee Fund (FGTS), the thirteenth salary, paid holidays with an additional 33%, and other mandatory benefits. In practice, these elements can increase the total cost of an employee by more than 70% compared with their base salary.
In this context, it is essential to analyse the employment model before starting operations. This includes defining the hiring structure, simulating employment costs, analysing the applicable collective agreements and implementing internal compliance policies.
Efficient workforce management not only reduces risks but also contributes to the financial sustainability of the business. As in the tax field, prevention and planning are key elements for operating successfully in Brazil.
In this context, it is essential to analyse the employment model before starting operations. This includes defining the hiring structure, simulating employment costs, analysing the applicable collective agreements and implementing internal compliance policies.
Efficient workforce management not only reduces risks but also contributes to the financial sustainability of the business. As in the tax field, prevention and planning are key elements for operating successfully in Brazil.
At UR Global Brazil, we have a team ready to support you with a study that simulates different scenarios and identifies the best path for your company.
Import studies
In a company’s internationalization process, each stage is crucial, and the way in which a company enters a new market is fundamental. Therefore, it is essential to conduct a preliminary study that analyzes the tax regulations of the destination country and properly calculates the cost of sales of products or services. This thorough approach is key to ensuring the success of the project and an effective entry into the new market.
At UR Global, we focus on the internationalization process as a whole, providing detailed tax studies, appropriate Brazilian tax regimes, and analyzing import costs by tariff rates, profit margins, and potential tax benefits to help the company gain a comprehensive view of the Brazilian market and make the best decisions when establishing itself in Brazil.
