Tax

Latam – Alert: Offshore loans, watch for withholding taxes!

Offshore loans: best practices and focus on Argentina, Brazil, Chile, Colombia and Mexico After carefully reviewing your capital structure and studying other forms of funding such as equity injection or local financing, you have finally decided that you would fund your local entity using an offshore loan. There are several challenges which require careful planning, …

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Brazil – Interests on Shareholder’s equity, what is this ?

A very singular way of paying distributable profit Once distributable income has been calculated the company has the option to either pay dividends  or interest on shareholders’ equity or a combination of both. Let’s take a better look at interest on shareholders’ equity or JCP (Juros sobre Capital Próprio), a very singular way of paying …

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Brazil – Dividends are tax-free, did you know?

Regulation, beneficiaries, and payment rules As per Brazilian Corporate Law and the company’s bylaws, the company must convene an annual shareholders’ meeting no later than four months after the close of the fiscal year. During this meeting, among other agenda items, shareholders exercise their voting rights to determine the allocation of the fiscal year’s results …

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Brazil – What is IOF and strategies to pay less

But what is IOF? The IOF, or Imposto sobre Operações Financeiras (Tax on Financial Operations), is a federal tax in Brazil established in 1964 by the Brazilian government. It has national applicability and serves as a means to collect taxes associated with financial operations conducted by both individuals and companies. In essence, the IOF is …

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