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Both options exist and serve different purposes. Pro-labore (the owner's salary) is the owner's compensation. It has INSS (social security) and income tax deducted. Profit distribution has its own taxation rules, which changed in 2026. That's why the balance between the two options needs an up-to-date calculation. Confirm the best split for your case with the accountant at TF Assessor.
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Our team helps you from start to finish, with support in English, Portuguese and Mandarin.
Chat on WhatsApp