Can I Claim Software and Subscriptions as a Business Expense in Brazil?
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.
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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. Business software fits the Lucro Real test when it is used for the activity. Keep the supplier document in the company's CNPJ: a Brazilian supplier issues an NF-e or NFS-e. A foreign SaaS supplier sends a normal invoice or receipt; ask your contador how payments abroad are recorded.
When you can claim
- Accounting, invoicing and project software used by the company
- Cloud hosting and storage for company data
- Domain names and website hosting
- Design, development and communication tools used for client work
- Paid seats used by staff or partners working in the business
- Annual plans paid in advance, which your contador may spread over the months they cover
When you cannot claim
- Personal streaming or entertainment subscriptions
- Software used mainly for private purposes
- Subscriptions in a partner's personal CPF used outside the business
Good to know
Pro tip: Pay business subscriptions from the company account or card so every charge matches a document in the company's CNPJ. Each month, send Finn the supplier documents together, or forward them to your AccountsOS inbox, so every card charge in the bank feed has its match before your contador closes the month.
Important: A document in a partner's CPF instead of the company's CNPJ is weak support. Ask the supplier to reissue it in the company's name. Keep the documents for as long as the Receita Federal can review the year. Finn stores each one against the transaction it supports, so you can find it in seconds.
Related expenses
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