Can I Claim Electricity, Internet and Phone as a Business Expense in Brazil?
Yes, for the business premises and business lines. Private use is not a company cost.
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AccountsOS keeps the books for Brazil businesses, tracks tax deadlines and handles expenses, in plain English. Ask Finn about yours, no signup needed.
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. Utilities of the business premises fit the Lucro Real test. The bill should be in the company's name or CNPJ. When a line serves both the business and private use, only the business share belongs in the books. Agree how the share is worked out with your contador and apply it the same way each month.
When you can claim
- Electricity and water at the business premises
- Internet and phone lines used for the business
- Mobile plans for staff
- Gas and waste collection at the business premises
- Internet at a coworking space or branch used by staff
- Security and alarm monitoring at the premises
When you cannot claim
- A partner's home utilities with no business share agreed
- Personal mobile plans
- Utilities at a holiday home
Good to know
Pro tip: Move business lines into the company's CNPJ so the bills match the books. Send Finn each monthly bill as it arrives. It matches the bill to the debit in the bank feed and flags a month where a bill is missing.
Important: A bill in a partner's CPF for the company's premises is weak support. Ask the provider to move the account into the company's CNPJ when you can.
Related expenses
Stop guessing what you can claim in Brazil
AccountsOS automatically categorises expenses with Receita Federal do Brasil-aware rules and tells you exactly what is claimable.
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