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Mitigate Your Business Risks with Due Diligence in Brazil

Mitigate Your Business Risks with Due Diligence in Brazil

Understand how to manage your business risks with due diligence in Brazil. Brazil's favourable conditions for doing business and consumer market size attract many multinational companies looking to expand into Latin America.  Brazil has several legal peculiarities that impact companies' way of doing business that they must be aware of. Additionally, it is important for companies to accurately understand and make informed decisions on the level of risk they face when engaging new partners or contacts, buying existing companies and assets, and hiring staff. In order to invest in a pre-existing company in Brazil, the investor should carry out comprehensive due diligence in Brazil. This means clarifying the legal and financial health of the company, among others. When should I carry out due diligence in Brazil? The purpose of due diligence is to help business owners understand any applicable risks to business activity and make informed decisions about those risks. The purpose of due diligence practices is to help business owners and decision-makers understand any applicable risks to business activity and make informed decisions about those risks that align with the best interests of the company. Executives may choose to undertake certain due diligence processes in Brazil when: Purchasing an existing companyPurchasing company assetsHiring specialized or senior staffPartnering with or contracting an unfamiliar agencyForming other key working relationships with individuals or organizations. Due diligence practices analyze relevant legal, financial, and background information in...

What are the Accounting and Taxation Requirements in Bolivia?

What are the Accounting and Taxation Requirements in Bolivia?

Expanding multinationals must understand and comply with their accounting and taxation requirements in Bolivia. This is crucial for business success when setting up and operating commercially over the long term. Failure to comply with local accounting and tax obligations could result in financial or other sanctions. We give an overview on the accounting and tax obligations in Bolivia for business. Of course, it is highly recommended to engage with a local bilingual accounting expert in the country to support your business. What are the tax rates in Bolivia? The value added tax rate is 13%, which is a low percentage compared to other countries in the region. Your company will primarily be subject to corporate income tax, value added tax (VAT) and social security contributions in Bolivia. Below is a list of aspects to consider when it comes to taxes in Bolivia: The value added tax rate is 13%, which is a low percentage compared to other countries in the region.  It does not apply to all export products and services.The capital gains tax rate is 25%, but it is exempt from the payment of transaction tax in the Bolivian stock market.The tax rate for establishing a branch of a company in Bolivia is 12.5%. The tax year varies depending on the activity of the company: Banking, commercial, and service activities have a fiscal year of 31 DecemberIndustrial, oil and gas companies have a fiscal year ending 31 March; Agro-industrial and forestry companies have a fiscal year ending 30 JuneMining companies' fiscal year ends 30 September. Each company must appoint an auditor to...

Key Business Accounting Services in Peru for Your Expansion

Key Business Accounting Services in Peru for Your Expansion

Utilizing professional business accounting services in Peru is an important step to comply with your fiscal duties. When expanding your business into a new country, it can be complex to understand and have the resources to take care of all accounting procedures. In this sense, seeking professional help from local accountants becomes a great asset. Key activities that your business must comply with include bookkeeping, payroll processing, auditing, and international taxation. Find out about the available business accounting services in Peru that you should take advantage of to ensure your own commercial success. Business Accounting Services in Peru: Bookkeeping Bookkeeping services also take care of local tax compliance. In Peru, businesses are required to file monthly and annual taxes to the local authority. Bookkeeping is a basic accounting process for any business. It includes keeping a daily record of business incomes and expenses. Additionally, it involves the drafting of financial statements that outline your business’ financial condition. These statements must be presented to the national tax authority in Peru, called SUNAT (National Customs Superintendence and Tax Administration). Bookkeeping services also take care of local tax compliance. In Peru, businesses are required to file monthly and annual taxes to the local authority. In addition to this, an experienced accountant will make sure your accounting registries are in compliance with local laws and regulations. Payroll Processing An important part of business accounting services in Peru is payroll. To comply...

Investing in Australia: Options and Incentives

Investing in Australia: Options and Incentives

Australia has a reputation for being one of the strongest economies in the world. With a GDP of AU$1.69 trillion in 2017 and the fifth freest economy in the world, Australia is proven to be a consistent and reliable country to do business in. Through extensive trade agreements, access to natural resources, and emerging, innovative industries, the country is attracting thousands of foreign businesses and investors to settle down there.  When engaging in business in Australia as a foreigner, there are many different options and incentives to boost your startup experience. One such consideration is applying for permanent residency. The country offers a variety of business visa options for applicants looking to be permanent residents. Below we give a breakdown of Australia’s foreign investor laws and protections, different types of visas available, and the benefits of doing business in Australia as a foreigner. Investing in Australia - Starting the investment process Australia is such an attractive location for foreign investment because of its flexible approach. Investment law is governed is by the Foreign Acquisitions and Takeovers Act 1975 and monitored closely. Applicants can submit their investment proposals online to the Foreign Investment Review Board Website (FIRB). With the application, investors must pay a fee at the time of submission. Once submitted, the process of approval should take no more than 30 days. With each application, the FIRB and the Treasurer review the investment individually for approval. This helps to ensure the protection and maintained-quality...

Brazil’s Newly Established Commercial Entity Could Be the Perfect Fit for Your Business

Brazil’s Newly Established Commercial Entity Could Be the Perfect Fit for Your Business

With the ninth highest GDP ranking in the world, Brazil’s economy is a force to be reckoned with. As a member of MERCOSUR, the G-20, WTO, and USAN, the country is well established in the global market. However, Brazil has historically struggled to incentivize and foster its domestic economy. Government regulations and laws stunted domestic economic activity for quite some time. Recently, President Bolsonaro signed measures which waive the difficult processes and licenses previously required for small and medium enterprises (SMEs) and entrepreneurship. The Empresas Simples de Crédito (ESCs) help fund SMEs and entrepreneurship and breakdown economic barriers for startups. We give an overview of how approval of ESCs came to fruition, what it does, and what it could mean for the Brazilian economy. Brazil New Commercial Entity - The need for the ESCs The need for ESCs stems from the fact that SMEs in Brazil account for 27.5% of the country’s GDP. Moreover, they supply 55% of the country’s legal jobs. Because of the large role SMEs play in Brazil’s economy, the government felt pressure to ease regulations and license/permit requirements. While the country had steady growth in the entrepreneurial sector for some time, it came to an abrupt stop. In 2018, the Global Innovation Index ranked Brazil 64th. This was the second-worst ranking amongst the country’s BRICS counterparts. Lack of legal infrastructure, heavy tax burdens, license/permit requirements, and insufficient monetary incentives inhibited the expansion of the entrepreneurial market. Moreover, Brazil’s 2014-2016...

Why Use Outsourced Accounting Services in Australia?

Why Use Outsourced Accounting Services in Australia?

When expanding into a new market such as Australia, there are lots of things that you need to take into consideration. You need to market your business and find the right employees to power your growth. Also, you must choose the right company structure so that you can operate freely and without government restriction. All necessary steps when incorporating in a new market must be accompanied by sound accounting practices. This includes complying with tax or payroll regulations or providing an overview of your expenditure. These services can be outsourced to an external party. Learn why Australia is an ideal country to use external accounting services, and why businesses are in safe hands with Australia’s expert finance sector. Outsourced Accounting Services - Australian Taxation Compliance The first reason for using accounting services in Australia is a universal one. In any country, companies must meet legal compliance requirements regarding their accounting. This is no different in Australia. Australia applies a unique tax system. Resident businesses are taxed on their worldwide income. That’s everything from the money they make in Australia, through to revenue from trading or exporting overseas. Non-resident companies, on the other hand, pay tax on the income they make in Australia. So, as an entrepreneur looking to set up a business on a shoestring budget, consider opening a branch office or relying on a professional employer organization to do business in the country. This way you can save on costs and avoid overpaying on tax. Moreover, Australia identifies three...

Individual taxes and contributions in Peru: what you should know

Individual taxes and contributions in Peru: what you should know

Peru continues to present itself as one of the most attractive economies for investment, especially in sectors such as mining, agriculture, textiles and coffee. Although Peru's relative ease of doing business will contribute to your Peruvian business success, the fiscal system is a challenging one. It's important to be aware of the how’s and why’s of tax legislation as a foreign expat or company in Peru. Read on to find out more about individual taxes and contributions, or see our discussion summarizing all corporate tax obligations. Individual Taxation in Peru - Identifying your residency status At first, it’s important to understand the difference between residency versus domicile. Peruvian tax (such as personal income tax) is not determined by residency. Instead, it is determined by domicile. In Peru, foreign individuals have a ‘’domicile’’ if they have been in Peru for over 183 days, within a 12-month timeframe. Temporary absence within this period does not change the residency status of the individual. Important: domiciled individuals have to pay income tax on their worldwide income, whereas non-domiciled individuals are only subject to income tax on their Peruvian-source income. Individual taxes and contributions In Peru, the National Superintendency of Customs and Tax Administration (SUNAT) supervises, collect and deals with personal labor taxes and other tax obligations. They are also in charge of the RUC number, which is mandatory to obtain. This identifies the taxpayer and is required for all economic activities. Labor Income Tax Peru has a tax on labor income...

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