What can Brazil businesses claim as expenses?
10 common business expenses with Receita Federal do Brasil-compliant rules for limited companies, sole traders and contractors in Brazil.
Bank Fees and Charges
Yes. Fees on the company's accounts, card machines and payment services are business costs.
Business Travel
Yes, when the trip is for the business. Keep the tickets, hotel documents and the reason for the trip.
Computers and Equipment
Partly. Equipment that lasts more than a year is usually recorded as a fixed asset and depreciated, not expensed at once.
Contador and Professional Fees
Yes. The fees of your contador, lawyers and other advisers to the company are business costs.
Electricity, Internet and Phone
Yes, for the business premises and business lines. Private use is not a company cost.
Marketing and Advertising
Yes. Advertising and marketing to win customers is a normal business cost.
Meals and Client Entertainment
Rarely. Meals and entertainment are hard to justify as necessary for the business. Ask your contador before treating them as deductible.
Office Rent
Yes. Rent for premises the company uses is a business cost.
Software and Subscriptions
Yes. Software and online subscriptions used for the business are normal company costs. Under Lucro Real they reduce taxable profit; under Simples Nacional or Lucro Presumido they do not change the tax.
Vehicle Costs
Partly. Vehicles used in the business can be company costs, but private use needs care and your contador's view.