Can I Claim Office Rent as a Business Expense in Brazil?
Yes. Rent for premises the company uses is a business cost.
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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. Rent for the company's premises fits the Lucro Real test. Keep the lease in the company's name and the receipts or invoices for each payment. Rent paid to a partner or a related person for premises the company really uses can still be a company cost, but the lease and the amount should match what an unrelated landlord would charge. Ask your contador before setting such a rent.
When you can claim
- Office or shop rent under a lease in the company's name
- Coworking membership for staff
- Condominium charges on the business premises
- Storage space or a warehouse used for stock
- Deposit or guarantee paid under the lease, recorded as an asset and not as rent
When you cannot claim
- Rent of a partner's home
- Premises used privately
Good to know
Pro tip: Keep the lease and the payment receipts together for each month. If the lease has an annual adjustment, tell Finn the new amount when it starts so the monthly match in the bank feed stays right.
Important: A home office shared with private use needs a reasonable split, agreed with your contador. Do not book the whole home rent to the company.
Related expenses
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