Web-based companies should invoice locally and pay local taxes, Brazil says - .PDF file.
By Guido Vinci and Leonardo Homsy
Confirming recent rumours, Valor Econômico — Brazil’s leading newspaper covering developments in the economy, finance and business — reported that the Internal Revenue Service (Receita Federal) is indeed preparing new regulations to require foreign web-based companies to invoice locally and pay local taxes.
A preliminary government study revealed that many web-based companies operating in Brazil are using their foreign offices — mostly located in low-tax jurisdictions — to perform all invoicing and receive payments through international credit cards, thus avoiding payment of taxes in Brazil…
Click on the link below to read the rest of the DLA Piper briefing.