Tax Technology & Compliance
Technologies and business processes for tax management in Brazil
Companies operating in Brazil need a clear understanding of the processes and operations relevant to their tax obligations, including the ongoing reporting of certain information.
Brazil was ranked 123rd out of 190 economies surveyed by the World Bank for its “2016 Doing Business” publication, which ranks countries according to the ease of doing business. The survey addresses aspects such as the time and effort required to form companies and pay taxes—criteria in which Brazil is even farther behind than its overall position in the survey.
It is essential for companies to have an integrated vision of the relevant processes and technical knowledge of the business operations aiming to manage the tax flows:
- The tax flows must be understood across the production, distribution and consumption chains;
- Federal, state and/or municipal taxes are levied on each transaction, which may be associated with one or more reporting obligations;
- Electronic monitoring and validation makes the inspection process by the tax authorities more effective and timely and, therefore, requires increased attention from companies to ensure that no information is omitted or incorrectly transmitted; and
- Aspects that influence taxation vary according to the specifics of each business transaction.