Tax & Compliance
Recognition of business expense as deductible on Brazil's personal income tax filing.
In Brazil, self-employed professionals log mileage in the Livro Caixa, which reduces the IRPF (personal income tax) taxable base. The expense must have proven business purpose, be reasonable for the activity, and be documented with a standardized receipt. The Receita Federal can request the ledger and receipts in audit (up to 5 years back). Generic deductions without substantiation get disallowed.