That our fiscal and accounting scenario is complex and full of intricacies, Brazilian companies are tired of knowing. Now, for foreign and multinational companies operating in Brazil, the difficulties seem to be even greater. The bureaucratic obligations are many for those who want to install their business in the country, whether it is industry or commerce of goods or services.
Regardless of the type and size of the business, international companies must pay extra attention to the tax and accounting charges foreseen under Brazilian law. Not only are they diverse, but they are constantly changing. Therefore, continuous monitoring is necessary.
In this context, the tax and accounting sectors are important to ensure the sustainability of a business. Clear and accurate financial statements and timely tax returns contribute to maintaining a company’s good financial health. But what are the main challenges faced?
When it comes to complying with the many tax and accounting regulations, it is necessary to have an experienced team in order to be able to schedule the payment of all taxes. It is worth pointing out that companies fit into different tax regimes, depending on their profile and size. The regime can be changed due to changes in the company itself and/or in the legislation.
There are also accessory obligations, which are declarations required by the authorities in order to confirm the payment of the main taxes. These statements have different deadlines and can be submitted monthly or annually, for example. Good planning is the basis for everything we do. The declarations must be filed on time to avoid the payment of fines and penalties.
Given the differences in tax and accounting legislation around the world, it is necessary to have specific knowledge of the local rules. However, in the case of companies with headquarters outside the country, there must be a certain degree of similarity between the accounting principles. For this reason, International Financial Reporting Standards (IFRS) were created.
The establishment of a standard enables better communication between companies established in different locations. Managers and investors have a much clearer and more accurate view of all the essential data to understand the situation of the company in question. International standards have made it possible to obtain financial information that is more reliable and easier to understand.
For business owners and managers, it is almost impossible to avoid the accounting process, given its importance. The only way out is often to hire professionals. Beyond the process of preparing balance sheets, cash flow, and financial statements is the need to strictly adhere to financial accounting standards, regardless of where your company is located.
Here in Brazil, your company can count on Pryor Global. We are specialists in Brazilian fiscal, accounting, and labor regulations, with more than 28 years of experience in the market. Have a reliable team in your accounting sector. Let’s talk!
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