Income Taxes

Regarding withholding tax and regularizations in income taxes, we help companies design and implement internal procedures that guarantee the correct application of withholdings to employees, pensioners, service providers, and capital income, reducing the risk of fines, compensatory interest, and disputes with the Tax Administration or the income beneficiaries themselves.

We analyze situations where reduced rates, withholding exemptions, or increased withholdings on income taxes may apply, particularly in transactions with non-residents or within group contexts. When withholdings are in excess or deficit, we evaluate the best path for regularization and guide the interaction with the Tax Authority until the procedure is concluded. In corporate groups, we help design intra-group payment flows compatible with withholding rules and regimes such as the RETGS, avoiding discrepancies between cash flow and the treatment of income taxes.

In the area of deductions and tax benefits, our work begins with the rigorous identification of available opportunities for each taxpayer profile and the analysis of their practical viability within the framework of income taxes. For individuals, we support the organization of relevant information, ensuring that the tax return structure fully reflects permitted deductions and reducing the probability of automatic discrepancies.

For companies, we map tax benefits applicable to investment, reinvestment, innovation, and capitalization, such as SIFIDE, RFAI, ICE, or other specific regimes. We work alongside management and accounting teams to define projects, separate routine costs from eligible expenses, prepare supporting dossiers, and coordinate with financing or non-repayable grants. In the event of a subsequent audit or review, we reconstruct the rationale behind the choices made and prepare the technical response to the authorities regarding income tax incentives, aiming to preserve the incentives obtained and avoid unnecessary clawbacks.

We assist corporate groups with available tax framework options, including the option for the special tax regime (RETGS), explaining the advantages of consolidating tax results within the context of income taxes. We verify compliance with legal requirements, prepare the necessary communications, and align internal profit accounting policies with the group's tax framework.

We monitor the communication to the tax administration, analyze issues such as the deductibility of financing costs, and the intra-group management of tax losses. We follow transactions involving the entry or exit of companies in the group, mergers, and demergers, ensuring compliance with legal deadlines and the proper allocation of payments on account (pagamentos por conta) and municipal surtax (derrama). In case of disputes, we analyze the consistency of the defended position with the group's accounting and contractual practices and outline, when necessary, an administrative or litigation strategy for its defense.

Whenever there are relevant changes in the personal or business situation: new sources of income, corporate reorganizations, capital gains transactions, entry or exit of partners, internationalization, or a change of country of residence. A timely review avoids surprises in the assessment of income taxes.

We analyze all types of paid income (employees, service providers, capital, non-residents) and design internal withholding tax procedures that reduce the risk of fines, compensatory interest, and disputes with the Tax Authority or with the income beneficiaries.

We map out tax benefits applicable to investment, innovation, capitalization, and reinvestment (such as SIFIDE, RFAI, ICE, and specific regimes), distinguishing routine costs from eligible expenses. We support the preparation of supporting dossiers and the defense of benefits in potential audits.

The RETGS is the special regime for the taxation of groups of companies that allows for the consolidation of tax results. We help evaluate whether applying the regime makes sense, verify eligibility requirements, prepare communications to the Tax Authority, and manage the utilization of tax losses within the group.

The outcomes of the OECD BEPS project and other standards resulting from international tax coordination directly influence issues such as transfer pricing, withholding taxes on non-residents, planning investment structures, and the risk of double taxation. Monitoring the changes emerging in this field is essential in the current framing of cross-border transactions, the evaluation of double taxation treaties, and planning under new transparency requirements regarding income taxes.

We reconstruct the legal and economic framework of the transactions, review proposed corrections, and define the best path of reaction: a request for clarification, an administrative appeal (reclamação graciosa), an ex-officio review (revisão oficiosa), or judicial or arbitral litigation. The focus is on defending consistent positions and reducing the economic impact of the corrections.

We analyze tax impacts from decision to reporting, coordinating planning, execution, and compliance. We anticipate areas with a higher probability of auditing and adjust internal processes so that the positions assumed in IRS, IRC, and withholding tax are supported by documentation and economic reality.

Ideally before making key decisions, such as defining remuneration policies, selling shares or real estate, restructuring groups, internationalizing, or investing in new projects. At these moments, prior framing in income taxes is usually worth more than any correction made afterward.