Multinationals that must transfer employees to their business units in Brazil must pay attention to the applicable regulations in the country. It is necessary to consider that the adequate expatriate management begins even before the foreign citizen lands here.
In this context, it is important to pay attention to immigration, labor, social security, and tax issues, in addition to supporting the foreign individual, who is subject to regulations that, if not complied with, bring consequences for the contracting company.
Therefore, the transfer must be well planned, if possible supported by specialized guidance in leading the entire process. By being aware of the global vision of the requirements associated with the use of foreign labor, the company can better plan its actions, costs, and schedules.
In another aspect, this preparation also provides security to the expatriate who arrives at the new work environment well supported, receiving the necessary support to be able to focus on the performance of the activities that motivated the decision to come to Brazil.
Planning the process is a method for the company:
Initial caution includes choosing the appropriate visa. Knowing details of the hiring is necessary to determine the best suitable setting.
This will depend on the function that the expatriate will perform in the company: whether to be part of the executive board or the company's management, to be listed in the articles of incorporation, in charge of the CNPJ, or simply to be a local employee, or if the work involves a boat regime or the performance of a specific technical function.
It is also important to highlight that even the remuneration structure of the expatriate may be affected by the type of visa.
The appropriate planning prevents the company from wasting time and money later, seeking to correct flaws in this classification.
In the management of expatriates, the company must base its performance on the current legislation, aware that the foreign employee is supported by the set of Brazilian labor laws. Thus, expatriate who have a local employment contract have guaranteed rights to the payment of FGTS, PIS/PASEP and social security, in addition to all other rights common to the Brazilian worker, such as vacation, Christmas Bonus pay, among others.
Brazil has social security agreements with several countries. Awareness of these understandings between different nations represents an opportunity to reduce costs in hiring expatriates.
This is another item that requires planning on the part of the interested company, as such agreements must be applied before expatriation, so that they result in relevant savings.
When a request for transfer is formalized with the social security authorities in Brazil and in the expatriate's country of origin, it is possible to continue contributing to the expatriate’s country, with no need to do this in Brazil. For companies, this also represents an advantage, since the agreement relieves the employer's contribution on the INSS.
In the tax area, it is noteworthy that Brazil has agreements in force with several countries to avoid double taxation to taxpayers. Guiding expatriates in this direction is a way of paying attention to their condition, making their experience in Brazil more satisfying and positive.
When the company hires a foreign worker in Brazil, it becomes committed before the authorities to ensure that this employee complies with the proper tax rules.
One of the problems, if any individual obligation is not met, is a possible difficulty for the company to obtain new authorizations for transferring foreign professionals to Brazil.
A simple inattention to the compliance of the individual taxpayer identification card (CPF) of a foreign citizen who holds a management position in Brazil can also hinder the progress of the legal entity's business..
An efficient expatriate management must begin with planning considering the applicable legislation for the legal entities that hire this form of work force and for the foreign employees themselves as soon as they establish an employment relationship in Brazil.
Specializing in advising multinationals to transfer foreign executives, Domingues e Pinho Contadores provides the necessary support for the company and the professional can work in full compliance with Brazilian law, enjoying legal advantages and only extracting the benefits of this borderless labor relationship.
On March 3, DPC promoted the webinar "Expatriate: practical issues and challenges of tax and social security management for companies". At the online event, Augusto Espanhol de Andrade, the partner responsible for the Individuals’ area at DPC, addressed about the immigration, tax, labor and social security issues that must be considered in the expatriation of employees, in order to keep the compliance with the authorities and avoid double taxation.
Check out the webinar recorded here. (in Portuguese only).
Domingues e Pinho Contadores has specialized team ready to assist your company.
Contact us by the e-mail email@example.com
Av. Rio Branco 311, 4º e 10º andar - Centro
CEP 20040-903 | Tel: +55 (21) 3231-3700
Rua do Paraíso 45, 4º andar - Paraíso
CEP 04103-000 | Tel: +55 (11) 3330-3330
Rua Teixeira de Gouveia 989, sala 302 - Centro
CEP 27910-110 | Tel: +55 (22) 2773-3318