In an interview with InvestNews, our partner Pedro Bresciani warned of the risks of paying personal expenses with corporate funds as a way to reduce taxation on dividends exceeding R$ 50,000 per month.
Pedro explains that partners’ personal expenses are not considered operating expenses of the company and, at InvestNews’ request, simulated a practical case that illustrates the concrete risks of this maneuver. Depending on how the Federal Revenue Service classifies the situation, the retroactive tax burden could reach rates of up to 35%, plus a 75% penalty on the tax due and interest at the Selic rate. In extreme cases, the company may even be excluded from the Simples Nacional tax regime.
