THE NEW BRAZILIAN LAW 14.995/2024: EMPOWERING SMALL BUSINESSES AND PROMOTING ECO-FRIENDLY INVESTMENTS

Brazil’s President sanctioned Law 14.995, a landmark piece of legislation aimed at permanently extending a range of programs designed to facilitate access to credit for small businesses and low-income individuals. Coming into force on October 11 after being published in the Official Gazette, this law significantly impacts the Brazilian economy by fostering entrepreneurship and sustainability.
Read more

COMPLETE GUIDE FOR DIGITAL NOMAD: ESSENTIAL TAX OBLIGATIONS

The digital nomad lifestyle has become increasingly popular. The possibility of working remotely, exploring different countries, offers unique freedom. However, this freedom brings with it legal and tax responsibilities that cannot be ignored.
Read more

COMPLETE GUIDE FOR DIGITAL NOMADS: ESSENTIAL LEGAL RULES

An article in the Harvard Business Review defines digital nomadism as “a lifestyle that allows you to take advantage of remote work to travel and reside in different places around the world, often in more accessible destinations”.
Read more

BNDES AND US BANK SIGN AGREEMENT FOR INVESTMENTS IN BRAZIL

With the aim of improving and deepening joint investment opportunities in Brazil, the National Bank for Economic and Social Development (BNDES) and the US International Development Finance Corporation (DFC), the development bank of the United States, signed a framework cooperation agreement.
Read more

"IT'S A NEW MOMENT IN BRAZIL", SAYS MINISTER DURING THE SIGNING OF THE COOPERATION AGREEMENT BETWEEN BRAZIL AND FRANCE

The Ministry of Culture (MinC) signed an important Memorandum of Understanding between Brazil and France, reaffirming the commitment to strengthen cooperation between the two countries in the cinematographic and audiovisual fields. The event took place during the Rio Market, a market space for the Rio Festival, one of the main events in the Brazilian audiovisual calendar.
Read more

STARTUPS INCREASE THEIR FOCUS ON CLIMATE INTELLIGENCE

In times of increasingly frequent bad weather, climate intelligence is gaining prominence in Brazilian agribusiness. And this interest has led agtechs to increase their investment in this area.
Read more

AMONG THE WORLD'S 100 MOST PROMISING FINTECHS, 5 HAIL FROM LATIN AMERICA

Last year, Latin America placed four startups on the Fintech 100, a survey by the North American market intelligence platform CB Insights. In 2024, there was an evolution: there are now five Latin names on the list that highlights the most prominent and promising fintechs in the market this year.
Read more

IMF RAISES BRAZIL'S GDP GROWTH PROJECTION FOR 2024 TO 3%

The International Monetary Fund (IMF) raised its growth projection for the Brazilian economy this year from 2.1% to 3%. Despite the improvement in expectations for this year, the fund estimates a slowdown in 2025, with growth falling from 2.4% to 2.2%.
Read more

Tax Compliance Costs for Businesses in the USA 

Tax compliance costs represent a significant challenge for businesses in the USA. This reality impacts both profitability and growth capacity. In this article, we will explore the main aspects of compliance costs and their implications for the business sector. 

What are Tax Compliance Costs? 

Tax compliance costs include all expenses related to fulfilling tax obligations. This covers expenses for accounting, consulting, and software. Additionally, the time invested by employees to handle tax matters is an aspect to be analyzed. 

Financial Impact on Businesses 

According to the Tax Foundation, small and medium-sized businesses face the greatest challenges. Compliance costs can consume up to 60% of the time dedicated to financial management. This reduces the resources available for investments and innovations. For many businesses, this results in less growth and competitiveness in the market. 

The Need for Reform 

The complexity of the tax system is one of the main reasons for the high costs. A reform can simplify tax obligations by modernizing the current system. Automating tax tasks can reduce costs and increase efficiency. 

How to Manage Compliance Costs? 

• Automation: Use tax management software. They help reduce errors and save time. 
• Training: Invest in training for your team. Well-trained employees manage tax obligations more effectively. 
• Consulting: Consider hiring specialists. Tax consultants can provide valuable insights. 

Tax compliance costs for businesses in the USA are high and increasing. However, tax system reform and the adoption of technology can provide some relief in costs. Efficient tax compliance management can lead to a healthier and more competitive business environment. 

Strategies for reducing taxes: adapting to the new rules of the Tax Reform in Brazil

In this article, we explore effective strategies for reducing taxes and ensuring compliance with the new rules of the Tax Reform in Brazil. Tax planning is a recurring topic on business and family agendas, especially with the imminent tax reform in Brazil. The new regulations will significantly impact the incidence of taxes on inheritances, donations and private pension plans.

What will change in inheritances with the new rules of the Tax Reform?

The main topic is the changes to the Causa Mortis and Donation Transfer Tax (ITCMD). Currently, each Brazilian state sets its own rate, which can be fixed or progressive, with a ceiling of 8%. With the reform, the ITCMD will become progressive, increasing according to the value of the estate.

In addition, the ITCMD will also be applied to open-ended private pension plans, including Free Benefit Generator Plans (PGBL) and Free Benefit Generator Life (VGBL). Amounts invested more than five years ago in the VGBL will not be taxed in the event of death.

Another significant change is the inclusion of ITCMD on inheritances and donations of assets abroad, a tax that until now did not exist for beneficiaries domiciled in Brazil. The Treasury estimates that the ITCMD represents 0.4% of the national tax burden, in line with the average for OECD countries.

Strategies to Minimize the Impacts of Tax Reform

• Creating Family Holdings: One of the main strategies is to structure family holdings. For those who own a lot of real estate, for example, it is possible to set up a real estate holding company, transferring the real estate to the company and leaving the holding shares to the heirs.
• Allocating resources abroad: For larger assets, allocating part of the resources abroad can be an alternative. This practice, if done legally and with income tax declared, helps to mitigate the “Brazil risk”.
• Lifetime Gifting: Anticipating the transfer of assets while you are still alive is another strategy. With the tax reform, donating real estate and other assets before the new rules come into force can minimize future tax impacts.
• Specialist advice: It is essential to rely on the advice of professionals who specialize in tax and succession planning.

The changes brought about by the tax reform require a careful review of estate planning. Anticipating and properly structuring the succession of assets can lead to significant tax savings and guarantee financial security for generations to come.