Can I Claim Computers and Equipment as a Business Expense in Brazil?
Partly. Equipment that lasts more than a year is usually recorded as a fixed asset and depreciated, not expensed at once.
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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. Fixed assets are recorded at cost and depreciated over their useful life. Under Lucro Real the depreciation charge is the deductible part. The tax depreciation rates are set by the Receita Federal; your contador applies them.
When you can claim
- Laptops and monitors used by staff, depreciated over their life
- Machinery and tools used in production
- Furniture for the business premises
- Phones and tablets issued to staff for work
- Servers and network equipment for the office
When you cannot claim
- Equipment for a partner's private use
- The full price of a long-lived asset in the month it is bought
- Equipment bought for a different company in the same group, which belongs in that company's books
Good to know
Pro tip: Send Finn the NF-e for each purchase so it can be recorded as an asset with its date and cost.
Important: Finn does not set the tax depreciation rate for a Brazilian asset. Ask your contador for the rate to apply. Small items such as a mouse or a cable are usually expensed when bought; your contador decides where the line between an expense and an asset sits for the company.
Related expenses
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