LLC × residence calculator · Edition 2026.09
If you lived in Brazil: how much tax you would pay on your LLC profit
Since 2024 (Law 14,754/2023), a controlled foreign entity is taxed every 31 December at 15% on the year's profit, distributed or not, if it sits in a favourably-taxed jurisdiction or privileged tax regime, or if its own active income is under 60% of the total. Cosit Ruling 56/2026 (15 Apr 2026) held that US LLCs with non-resident members not subject to federal tax are, by definition, a privileged tax regime (IN RFB 1,037/2010, art. 2, VII): that triggers the 15% annual charge regardless of the active-income test.
Isaac Cubero · Checked on 14 September 2026 · worldwide income
At $100,000 of profit
On $100,000 of LLC profit, living in Brazil, you would pay about $15,000 a year: a 15% effective rate.
worldwide income
| Controlled foreign entity: 15% annual on profit, whether distributed or not | $15,000 |
| Estimated total | $15,000 |
Sources: Law No. 14,754 of 12 December 2023, art. 5 · RFB Normative Instruction No. 1,037/2010, art. 2, item VII (US state LLCs as a privileged tax regime) · Cosit Ruling (Solução de Consulta) No. 56 of 15 April 2026 · Law No. 9,249/1995, art. 3 (corporate tax and surtax) and art. 10 (dividends), amended by Law No. 15,270 of 26 November 2025 · Fixed exchange rate 5.12 BRL/USD.
Rank 21 of 38 residences by effective rate at this profit.
- 2026 rules: Law 14,754/2023, regulated by IN RFB 2,180/2024.
- Local company's profit assumed distributed in a single annual payment (so the Law 15,270/2025 10% applies to nearly the whole amount).
- No PIS/COFINS, no social security contributions, no personal income tax deductions.
- Cosit Ruling 56/2026 is recent and contested: some argue in court that taxing undistributed income (let alone from a transparent LLC) breaches the 'economic availability' concept of art. 43 of the National Tax Code.
- The 15% annual regime only triggers if the LLC falls under IN RFB 1,037 (non-resident ownership in the US, no federal income tax) or its passive income exceeds 40%; if your LLC pays US federal tax (via ETBUS or a corporate election), the analysis changes entirely.
- Working physically from Brazil can also trigger monthly personal income tax (carnê-leão, progressive up to 27.5%) on that portion as self-employment income.
- The 10% dividend withholding (Law 15,270/2025) is on the Brazilian LOCAL company, not the foreign entity; distributing under BRL 50,000/month per partner avoids it.
- Law No. 14,754 of 12 December 2023, art. 5
- RFB Normative Instruction No. 1,037/2010, art. 2, item VII (US state LLCs as a privileged tax regime)
- Cosit Ruling (Solução de Consulta) No. 56 of 15 April 2026
- Law No. 9,249/1995, art. 3 (corporate tax and surtax) and art. 10 (dividends), amended by Law No. 15,270 of 26 November 2025
- Fixed exchange rate 5.12 BRL/USD.
At three profit levels
What you would pay in Brazil depending on what your LLC earns.
| Annual profit | Estimated tax | Effective rate | You would keep |
|---|---|---|---|
| $50,000 | $7,500 | 15% | $42,500 |
| $100,000 | $15,000 | 15% | $85,000 |
| $250,000 | $37,500 | 15% | $212,500 |
And if it were not an LLC
The five cheapest structures from Brazil, distributing all the profit.
| Structure | Corporate | Withholding | You, in Brazil | Total |
|---|---|---|---|---|
| US LLC | $0 | $0 | $15,000 | 15%$15,000 |
| UAE free zone | $0 | $0 | $15,000 | 15%$15,000 |
| Hong Kong Ltd | $8,250 | $0 | $13,763 | 22%$22,013 |
| Bulgarian EOOD | $10,000 | $4,500 | $9,000 | 23.5%$23,500 |
| Georgian LLC | $15,000 | $4,250 | $8,500 | 27.8%$27,750 |
Frequently asked questions
Does a US LLC pay tax if I live in Brazil?
The LLC pays no US federal tax if it has no US activity. Since 2024 (Law 14,754/2023), a controlled foreign entity is taxed every 31 December at 15% on the year's profit, distributed or not, if it sits in a favourably-taxed jurisdiction or privileged tax regime, or if its own active income is under 60% of the total. Cosit Ruling 56/2026 (15 Apr 2026) held that US LLCs with non-resident members not subject to federal tax are, by definition, a privileged tax regime (IN RFB 1,037/2010, art. 2, VII): that triggers the 15% annual charge regardless of the active-income test.
How much would I pay in Brazil on $100,000 of profit?
On $100,000 of LLC profit, living in Brazil, you would pay about $15,000 a year: a 15% effective rate. The figure comes from applying controlled foreign entity: 15% annual on profit, whether distributed or not to the profit converted to BRL.
Is Brazil a territorial country?
No: Brazil taxes its residents' worldwide income. The LLC profit goes into your income tax under the country's rule (worldwide income).
Next
The figure is the start. The structure is the decision.
To see Brazil against the other 37 residences: the full ladder.