How should employees process expenses in Brazil?

Modified on: Thu, 25 Sep, 2025 at 12:43 PM

TABLE OF CONTENTS

Expense Policies and Documentation
- Company Policies
- Required Documentation
Types of Reimbursable Expenses
Invoicing & Documentation
Travel & Mileage
Reimbursement & Taxation
Record Retention
Reimbursement Process

At Horizons, managing and processing expenses efficiently is essential for both employees and the company. This guide outlines how to navigate the expense reimbursement process in Brazil, ensuring compliance with local regulations and internal policies.

Expense Policies and Documentation

To be eligible for reimbursement, employees must submit:

Receipts and Invoices: All expenses must be supported by valid fiscal documents.
Invoice Detailsmust include:
- Issuer Information: Vendor’s full name or business name, address, and CNPJ (corporate tax ID) or CPF (individual tax ID).
- Description of Expense: Clear and detailed explanation of the goods or services.
- Amount and Tax Breakdown: Total cost including applicable taxes (e.g., ICMS, ISS).
- Employee Information: While not mandatory on the invoice, the employee’s name should be included in the reimbursement request or attached documentation.

Types of Reimbursable Expenses

Business Travel: Includes airfare, lodging, meals, and other travel-related costs. Must be documented and aligned with company policy.
Office Supplies: Necessary items for work-related tasks are reimbursable.
Client Entertainment: Expenses for client meetings or business-related entertainment are reimbursable if justified and approved.

Invoicing & Documentation

Tax-Free Reimbursement Requirements:
- Invoices must include the supplier’s name, address, and CNPJ/CPF.
- Horizons should be listed as the buyer when possible

Horizons Global Technology Brazil Ltda

NIRE (Número de Identificação do Registro de HORIZONS GLOBAL TECHNOLOGY PTE. LTD Calçada das

Margaridas 163Sala 2, Conjuro 27, Cond: 01, Condominio Centro Comercial Empresas) : 35260977232

Invoice Necessity: Invoices are generally required for all reimbursements. Thresholds for simplified documentation may be defined by internal policy.

Required Supporting Documents:

Receipts/Invoices
Proof of Payment (e.g., bank statement or transaction confirmation)
Expense Report: Including date, amount, purpose, and description of the expense.

Travel & Mileage

Mileage Reimbursement: There is no fixed legal rate, provided there is a clear proof of travel.
Fines, Tolls & Parking:
- Traffic fines are not reimbursable.
- Tolls and parking are reimbursable with valid receipts and if related to business travel.
Daily Commuting: Brazilian law requires employers to provide a transportation voucher for commuting via public transport. This does not apply to private vehicles or rideshare apps.

Reimbursement & Taxation

Tax-Exempt Expenses:
- Business travel (transportation, lodging, meals)
- Training and professional development
Per Diems (Diárias):
- Exempt from Individual Income Tax (IRPF) if they are reimbursements for actual business-related expenses and are properly documented.
- There are no fixed legal limits (per Cosit Consultation Solution No. 73/2013), but amounts must be reasonable and justified.
Client Entertainment & Gifts:
- No specific legislation; treatment depends on how the expense is processed (e.g., payroll implications).
Health & Wellness Benefits:
- Typically considered personal and non-deductible, unless explicitly included in the employment contract or company benefits policy.
VAT (ICMS/ISS):
- VAT is applicable on reimbursable expenses.

Record Retention

Both employees and Horizons must retain expense records for up to 5 years, in line with Brazilian legal requirements. This ensures compliance and supports potential audits.

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