OFFSHORE INTERNATIONAL ACCOUNTING
With the implementation of the capital repatriation program (RERCT), the Brazilian tax authorities began to pay greater attention to offshore companies, which requires greater caution from taxpayers.
Keeping regular accounting demonstrates offshores’ greater economic substance and could prove decisive in the event of a tax assessment. The Declaration of Brazilian Capitals Abroad (Bacen) requires filling in the net equity and income for the period, which are accounting concepts and require the preparation of financial statements.
For this reason, some precautions must be taken:
Manter a contabilidade regular demonstra maior substância econômica da offshore e poderá ser decisiva em caso de autuação Fiscal.
A Declaração de Capitais Brasileiros do Exterior (Bacen) requer o preenchimento do patrimônio líquido e do resultado do período, que são conceitos contábeis e necessitam da preparação das demonstrações financeiras.
Por essa razão alguns cuidados devem ser seguidos:
- Keep the offshore accounting and financial statements up to date;
- Pay attention to the rules for taxation of foreign income;
- Maintain the regularity of legal and corporate aspects in the company’s home country;
- Keep all offshore bank statements and financial documents;
- Complete bookkeeping of companies from various sectors of activity, in compliance with international accounting standards (IFRS).
The conversion of company balance sheets for reporting to other countries is part of our service portfolio, and our job is to translate the balance sheet into the language required by the recipient of this information.