To have an efficient corporate tax planning in Brazil, it is advisable for companies to carry it out in 4 phases.
Phase 1: Make a diagnosis of the company’s situation in relation to all taxes of its operation. Calculate the most efficient tax regime. Check localized and sectored tax benefits. Choose the main objective: tax or business-structural.
Phase 2: Review accounting practices. Review the calculation of taxes with a focus on the assessment and the use of possible tax-credits. Review the company’s tax discussions in the courts.
Phase 3: Have global attention to the particularities of all taxes. Simulate scenarios stressing the various variables. Simulate prospective scenarios over time with the possibility of changing legislation and jurisprudence. Simulate scenarios of return and undo of the new suggested structure (reverse scenario).
Phase 4: Document the decisions taken and file for management analysis of the company and future consultation. Select the necessary documentation to equip the new structure and the new operations. Separate and archive. Implement the decisions made. Monitor over time compared to the studied scenarios.
The goal of all planning is to bring more efficiency to the company as a whole. That is why it is important to analyze the implementation method for both the study and the application and for subsequent monitoring.