Can I Claim Contador and Professional Fees as a Business Expense in Brazil?
Yes. The fees of your contador, lawyers and other advisers to the company are business costs.
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What Receita Federal do Brasil says
How a cost affects income tax depends on the regime. Under Lucro Real an operating expense is deductible when it is necessary for the activity and the upkeep of the business, and usual or normal for its kind of business (RIR/2018 art. 311). Under Lucro Presumido and the Simples Nacional tax is worked out from revenue, so expenses do not reduce IRPJ or CSLL, though they still belong in the accounts. Professional services to the company fit the Lucro Real test. The provider issues an NFS-e to the company's CNPJ. Ask your contador whether any withholding applies to a given service. The same applies to lawyers, auditors and consultants who work for the company: the document should name the company, its CNPJ and the service provided.
When you can claim
- Monthly bookkeeping and payroll by a contador
- Legal fees for company contracts
- Registration costs at the Junta Comercial
- Tax advice for the company
- Audit or review work the company commissions
- Fees for setting up or changing the company's registration through REDESIM
When you cannot claim
- Advice on a partner's personal tax return
- Fees for a partner's personal matters
- Fees for advice on a partner's private property or inheritance
Good to know
Pro tip: Ask your contador for one NFS-e a month so the fee is easy to match in the bank feed. Agree in writing what the monthly fee covers, for example the PGDAS-D or the DCTFWeb, so one-off work such as an ECF or a change at the Junta Comercial is easy to spot when it is billed.
Important: Advice to a partner personally is not a company expense, even if the company pays it. If the company pays a partner's private adviser, treat it as a payment to that partner and tell your contador, so it is recorded correctly in the partner's current account or as pró-labore.
Related expenses
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