Accounting in Brazil for Offshore Companies

What we offer your business

While you expand your business globally, we simplify offshore accounting, ensuring compliance and tax efficiency.

Offshore Accounting

It consists of monthly and annual bookkeeping to meet obligations to the respective local governments. Our statements are prepared in accordance with IFRS standards, taking into account all the details of assets and liabilities to correctly assess the results for each period. Our team also works on the submission of annual reports such as the Economic Substance Test and the Annual Financial Return.

Offshore accounting in BRGAAP

After preparing the balance sheet to meet the offshore company's local obligations, our team converts and prepares the financial statements in accordance with Brazilian accounting standards. As required by Law 14.754/2023, all companies located in countries with favorable taxation must prepare financial statements signed by a Brazilian accountant in accordance with the accounting standards adopted in Brazil.

Testimonials

Our clients

Drummond is much more
than
an Advisory an Accounting a Consulting a Strategic partner |

Drummond Advisors was born with the mission of meeting the needs of companies operating in Brazil and the United States, building bridges that connect entrepreneurs to new markets, new business partners, new employees and new investors in foreign territories. Today, Drummond helps companies from anywhere in the world to enter the United States, facilitating business internationalization in a strategic and secure manner.

Drummond believes that it is not enough to open a company in another country: you need to internationalize your business, which goes far beyond establishing a legal entity in a new territory. In order to take this important step in your company’s history firmly and safely, you need to plan, understand the impacts of the operation and mitigate the accounting, legal and tax risks.

We have several specialists to assist you in the best possible way

FAQ

Frequently Asked Questions

Offshore is a term used to refer to “companies” incorporated abroad. These companies can be limited companies or joint stock companies, as we know them in Brazil. In addition, depending on the law of the country in which they are incorporated, offshores can be incorporated as companies or non-personified entities, which have no equivalent in Brazil, such as partnerships, foundations and investment funds with very different rules to Brazilian funds.

Yes, if you are a Brazilian tax citizen and have joint or shared control of an offshore company, you will need to convert the balance sheet to Brazilian accounting standards with the signature of a qualified accountant to support your personal income tax return.

Yes, in this case there is joint control of a company in a tax-favored country and if they file a separate return, both spouses will need to report their percentage share of the profits on their personal income tax return.

No, if you do not have control of an offshore company there is no need to offer to tax the portion of profits earned under law 14.754/2023, however you must report the investment at cost in your personal income tax return as well as any change in contributions or redemption of the investment.

Yes, if the income earned by the LLC company is entirely derived from rents, it is considered passive income for tax purposes under law 14.754/2023, and all companies that have 40% or more passive income must be reported as a controlled entity subject to 15% taxation in Brazil on the profits earned for the year.