Happy Friday! Today, we talk about companies in pursuit of predictable tax rules. Gol files for Chapter 11 bankruptcy protection. Itaipu disagreements continue. And a conviction for the Mariana dam disaster.
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Tax predictability wanted
According to Brazilian tax authorities, more than 739,000 small and medium-sized businesses have requested to join the Simples Nacional tax regime this year, an 88 percent increase from the same period in 2023.
👉 Why it matters. Under Simples Nacional, companies pay all their taxes through a single monthly invoice, based on a table of reduced rates according to the company’s turnover.
How it works. Simples Nacional is restricted to small companies with yearly revenue of up to BRL 4.8 million (USD 975,000). They must decide whether or not to join by late January every year (but do not need to renew their membership if they have already joined).
- Companies outside of the Simples Nacional regime pay taxes under different rules.
What’s happening. Tax law expert Maria Carolina Gontijo tells The Brazilian Report that there are two...