Brazil

EnglishConnect in Brazil

Summary

February 20, 2018

*This summary applies to EnglishConnect 1, EnglishConnect 2, and Learn English Now only.

1. Legal Entity:  

The Brazilian Association of The Church of Jesus Christ of Latter-day Saints (the “Association”), can carry out the EnglishConnect program in Brazil. The EnglishConnect program will be part of the Self-Reliance activities already taking place in Brazil. The Association has the corporate authority to administer the EnglishConnect program. 

2. Regulations and Licensing Requirements:  

The Association can administer EnglishConnect courses in chapels and meetinghouses so long as the general operating permit for such chapel or meetinghouse is not strictly limited to worship services.¹ The Association is not subject to any other regulations or licensing requirements, including but not limited to those for education, when it administers the EnglishConnect program.

3. Tax Consequences:  

The Association is not subject to any tax consequences or reporting obligations if it administers the EnglishConnect program so long as it offers these courses free of charge. Administering the

EnglishConnect program will not jeopardize the Association’s current tax exempt status and activities can take place in meetinghouses without jeopardizing their property tax exemptions. In order to avoid tax and reporting requirements, the Association should provide EnglishConnect materials for free, either in hard copy or in electronic form for participants to download and print at home.²

4. Other:  

Other than those listed below, there are no legal issues arising from the Association’s administration of the EnglishConnect program in Brazil.

1. No additional operating permit or license is required for chapels or meetinghouses located in the state of São Paulo. However, the Association should confirm that the operating permits for chapels or meetinghouses located outside of the state of São Paulo do not restrict activity beyond worship services. The Association must also ensure that the number of participants attending an EnglishConnect course does not exceed the number permitted in the chapel’s or meetinghouse’s operating permit.
2. Sales of books, newspapers, periodicals, etc. are exempt from the following taxes: ICMS (imposto sobre operações relativas à circulação de mercadorias e serviços de transporte interestadual de intermunicipal e de comunicações) and IPI (imposto sobre produtos industrializados), but not exempt from IRPJ (imposto de renda sobre pessoa jurídica) and CSLL (contribuição social sobre o lucro líquido). To avoid the tax liability on any profits gained from the sale of course materials, the Association should provide course materials free of charge.