New Requirement for Brazilian Controllers
Brazilian residents who control offshore companies are now required to prepare financial statements for the 2024 calendar year in accordance with Law No. 14,754, enacted in December 2023.
Which Accounting Standard Should Be Used?
BR GAAP (Brazilian Generally Accepted Accounting Principles), which are aligned with international accounting standards, must be used when the offshore company is located in a jurisdiction considered to have a privileged tax regime by the Brazilian authorities.
In cases where the company is not located in a jurisdiction considered a tax haven, International Financial Reporting Standards (IFRS) may be used.
The Importance of Financial Statements
The preparation of financial statements will directly assist Brazilian taxpayers in calculating any taxes due based on the profits generated by the offshore company during the 2024 fiscal year.
In addition to meeting legal requirements, financial statements provide better organization of the company’s information and serve as supporting documentation for the proper fulfillment of the Brazilian controller’s tax obligations.
How Can Dartmouth Help?
Dartmouth International has its own international accounting team and has been preparing IFRS-compliant financial statements for more than ten years, in addition to having extensive experience in the preparation of BR GAAP financial statements.
Our reports include specific information and explanatory notes that can further assist Brazilian taxpayers in determining the taxes related to their international structures.
Do Not Leave It Until the Last Minute
Preparing financial statements requires time to gather, organize, and analyze the company’s information.
For this reason, we recommend engaging accounting services for the 2024 fiscal year well in advance, allowing sufficient time for the proper preparation of the required documentation.
This article is provided for informational purposes only and does not constitute legal, tax, or accounting advice. Each international structure has its own characteristics and should be analyzed individually by qualified professionals.
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