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Stock Plans in Brazil

Summary Table
(Updated as of December 2023)


The main concern for a company offering stock compensation to employees in Brazil is what position to take on taxes.

If the company is recharging its local Brazilian entity, then the position is clear, the income is treated as compensation subject to income tax and social tax withholding.

Without a recharge, the company is not required to withhold income tax, but the social security position is unclear. For stock options, there is also the possibility that the company can take the position the income is investment income and not taxable until the shares are sold.

Foreign exchange restrictions are also a concern. As are the inability for a company to make payroll deductions in respect of an ESPP.

Overview of Stock Plans in Brazil

Taxation of Employee

 

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Securities Laws

 

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Exchange Controls

 

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Employment Laws

 

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Payroll Deductions

 

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Privacy Laws

 

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Electronic Signature

 

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Stamp Duties

 

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