How to Send Profits from a Brazilian Company Abroad

A Brazilian company with a foreign partner can send profits abroad legally and routinely. The company determines its profit with the accountant, the partners approve the distribution and the bank executes a foreign exchange contract to send the money to the parent. Two conditions are essential: the foreign capital must be registered with the Central Bank, and the company must withhold the tax due. The big news is that since January 1, 2026, dividends paid to partners abroad carry a 10% income tax withholding, created by Law 15,270/2025.

The remittance step by step

1. Profit calculation: the accountant closes the books and calculates the profit available for distribution.
2. Approval: the partners approve the distribution, in minutes or another document provided for in the articles.
3. Tax withholding: the company withholds the 10% income tax on the amount paid to the partner abroad and pays it over.
4. Foreign exchange contract: the bank converts the reais into foreign currency and sends them to the parent's account.
5. Central Bank update: the remittance is linked to the foreign capital registration.

The Central Bank registration

When the parent sends money to form the capital of the Brazilian company, that foreign direct investment must be declared to the Central Bank. That registration proves the money came from abroad and lets you send profits and repatriate capital later. Many companies only discover the problem at the first remittance. See how to open a company in Brazil as a foreigner and bank account for a company with a foreign partner.

The dividend tax since 2026

For almost thirty years, dividends distributed by Brazilian companies were exempt from income tax. Law 15,270/2025 changed that rule:

	Until 2025	Since 2026
Dividends paid to a partner abroad	Exempt	10% income tax withholding
Minimum threshold	Not applicable	None: it applies to any amount
2025 profits approved by 12/31/2025	Exempt	Still exempt (transition rule)

According to the Federal Revenue, the withholding applies to payments to partners resident or domiciled abroad, individuals or companies, and is paid on the date of payment. The rules are set out in Federal Revenue Normative Instruction 2,299/2025. Some details of the transition rule are still debated, such as the deadline for paying out 2025 profits, so confirm your case with your accountant.

Double tax treaties

Brazil has treaties with many countries to prevent the same profit from being taxed twice. Depending on the parent's country, the tax withheld in Brazil may be credited there. Ask your accountant or tax adviser to review your country's treaty and local rules before the first remittance.

Other ways to pay the parent

Besides dividends, there are other ways to compensate the parent, each with its own taxation:

• Interest on equity (juros sobre capital próprio): a way to compensate partners that the company can deduct from taxable profit, with its own rules and limits.
• Royalties and licenses: payment for using the parent's trademark or software. Register the mark in Brazil first; see how to register your trademark in Brazil.
• Services provided by the parent: paid under a contract and subject to taxes on imported services.

These alternatives have their own rules on withholding income tax, contributions and transfer pricing. Choose with your accountant, looking at the total cost, not just one tax rate. The tax reform also changes the taxation of imported services through 2033.

Common mistakes

• Not registering the foreign capital with the Central Bank.
• Distributing profit without financial statements or formal partner approval.
• Forgetting the 10% withholding and having to pay the tax later, with a penalty.
• Ignoring the parent country's treaty and paying tax twice.

Summary

Sending profits from Brazil abroad is legal and common, as long as the capital is registered with the Central Bank and the remittance follows the right path: financial statements, partner approval, tax withholding and a foreign exchange contract. Since 2026, dividends paid abroad carry a 10% withholding. To set up this flow safely, see accountants in Brazil: what they do and what they cost or talk to BrazilDoor.