Do I need to have a pro-labore even if I prefer to only withdraw profits?

In most cases, yes. When the owner works in the company, the law usually requires a pro-labore (owner's salary/draw). This pro-labore generates a contribution to the INSS (social security). You can't rely only on profits to avoid the tax. The right approach is to set an appropriate pro-labore and distribute the rest as profit. The rules and reference amounts may vary, so confirm what applies to your case with the accountant at TF Assessor.

← See all questions and answers