Tax Law

We also represent clients in disputes with the Internal Revenue Service (IRS) and the Florida Department of Revenue. In the realm of international affairs, we have experience assisting with asset protection planning and structuring, both for foreign entrepreneurs and investors looking to invest in the United States, and for clients in the United States looking to invest overseas. For the convenience of our clients, we work closely with an independent tax accountant who will provide additional advice on all tax issues.

• Pre-immigration tax planning

INCREASE OF ACQUISITION COST OF INVESTMENTS (step-up basis): Before transferring tax domicile, it is possible to bring investments in foreign companies to present value. This reduces the calculation base for income tax on capital gains if the taxpayer decides to sell the asset after becoming an American taxpayer.

CHOICE OF TAX TREATMENT FOR BRAZILIAN COMPANIES (check the box election): Before transferring tax residency, it is possible to choose the legal nature of Brazilian companies incorporated as “LIMITED” or “EIRELI”, so that the Income Tax and Social Contribution paid on revenue (by the Brazilian company) can be offset against the American Income Tax payable when profits are disbursed to the U.S.-based partner.

CREATION OF A US CORPORATION AS A HOLDING ENTITY FOR BRAZILIAN SAs: The distribution of profits from foreign subsidiaries to American corporations is exempt from Income Tax, making it an excellent mechanism for tax savings.

REVENUE RECOGNITION AND ACCUMULATED PROFIT DISTRIBUTION: Before changing their tax domicile, the taxpayer may present to the American tax authority a list of consolidated receivables that will not be subject to taxation when liquidated (e.g., promissory note). In addition, accumulated profits must be distributed in advance.

GIFT AND ESTABLISHMENT OF TRUSTS: Gift and establishment of trusts prior to changing tax residency will reduce the taxable base for estate tax, which is $11.7 million for residents.