Compare And Contrast Paulo And Adyen

Improved Essays
2.4 – Transaction Example

The different ISS tax rates between São Paulo and Barueri provide different after tax revenue for Adyen. The lower tax rate of Barueri allows for a high margin pert transaction and this additional cash can be used as seen fit for the company’s needs. It can either be used for reinvestment or other cash needs. The effect of the reduced tax burden can be seen here in a transaction example of 1000 BRL with a 3% commission for Adyen resulting in a 30 BRL before tax revenue.

Value Commission 3% ISS PIS - COFINS After Tax Revenue
Barueri 1000 30 0.60 2.78 26.63
São Paulo 1000 30 1.50 2.78 25.73

The difference of between the two after tax revenues is .90 BRL cents, which is roughly 3.5% more after tax revenue. The added amount of cash is significant for any company but the advantage can take other forms. The difference in ISS rates also allow a PSP in Barueri to reduce their commission 10 basis points to 2.9% and still earn roughly the same after tax revenue. Therefore, not only does the lower ISS rate afford additional cash on hand, it can also make Adyen more competitive with price, which is crucial when entering a new market and trying to gain market share. The tax advantages of Barueri are magnified when examined at a larger scale of the
…show more content…
The period of analysis is measured from 2012 through 2015. The 4-year period represents the time from when Adyen began operating in Brazil to when the applicable service code and ISS rate we’re reduced to 2%. The two cash flows by ISS rate for the 4-year period are brought to the present value in order to determine financial difference. The calculation of the difference allows for the analysis of whether the tax savings is significant enough to have located in Barueri instead of São Paulo during the first 4 years of

Related Documents

  • Improved Essays

    Justin and Adnan Compare and Contrast Essay By Alexi Vergel de Dios In episode 7 of Serial, Sarah Koenig tells us of a case that is similar to Adnan’s. Justin Wolfe was convicted for the murder of Daniel Petrol Jr. and Adnan Syed was convicted for the murder of Hae Min Lee. They are known to act differently around certain people.…

    • 851 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Booker T. Washington and W. E. B DuBois used different strategies when dealing with the problems faced by African Americans at the end of the 19th century and the beginning of the 20th century. Segregation was a big problem during this time and African Americans were the ones facing the brunt of this issue. Both Washington and DuBois tried to fight for equality of African Americans and were in hopes that their actions, as well as programs, would help aid society toward agreeing with them. Washington was more about trying to gradually institute equality whereas DuBois took a more immediate approach. Even though Washington and DuBois took on different views, it can be agreed that both men took important steps to improve equality for African Americans…

    • 1058 Words
    • 5 Pages
    Improved Essays
  • Superior Essays

    Cesar Chavez and Gandhi are different person but they are the same in a way. They had fought for the same thing and that is for there rights both of they fought right thing. Like Cesar Chavez he had fought for farmers rights and the most famous thing he had said was “Si, se puede”. Also Gandhi had fought for being free from the British that had ruled India and South Africa at the time. But I think that Cesar Chavez is a better hero they Gandhi because Cesar help farmer by get they better pay and better conditions for working.…

    • 621 Words
    • 3 Pages
    Superior Essays
  • Superior Essays

    The purpose of this statement is to answers the question of where did the cash come from and where it has gone. In the financial statement the explanatory statement will be available in the Notes to Cash Flow Statement. This information provides details and explanation of certain key aspects of the cash flow statement. Purchase of Long Term Investments can be located in the Cash Flow Statement under the section Investing Activity. Under the accrual basis of accounting income and expenses are accounted when the get due irrespective of the fact whether they are received or not , whereas under cash basis of accounting income and expenses are accounted or taken into account in the year in which they are received irrespective of the fact in which year the same has got…

    • 1119 Words
    • 5 Pages
    Superior Essays
  • Improved Essays

    Damaris, the goddess of the Upperworld, was very nice and beautiful. Damaris was married to Deorsa, the god of plants and crops. She had two sons named Aegeus and Aeneas. Aeneas was brought to life from a statue and was mortal, unlike his parents. Aegeus was a immortal, strong and powerful like the rest of his family.…

    • 765 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Understanding the Fair Tax Act A lot of Bronx tax payers feel that the tax system applicable here is too complicated. It is thus that the wealthy and other exceptional groups are taking advantage of the same and the other tools to avoid the payment of taxes. It is this that a proposal to introduce Fair Tax Plan has now come up. There are many other reasons to this and it is thus that it has gained a lot of recognition too.…

    • 837 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    This is a beautifully-written article, and point taken. Cole's insight is based on real data that quantifies what black Canadians have been saying for decades. He's trying to make race relations more honest. His words are an affirmation of the realities and experiences of black people, and he shares these experiences with an intelligence that can only come with deep reflection and consideration. Through his work, he puts an unwanted mirror to those who benefit from the privilege of power.…

    • 499 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    Kristen Walter AP English Language and Composition Ms. Widrig 12 April 2018 Birds Essay If someone were to venture outside on most any day, or even just look out of their window, they are extremely likely to see some sort of bird. Perhaps one would think nothing of them, being a daily occurrence. However, writers often delve into topics deeper than ordinary people do and show a how those birds affect them personally.…

    • 1047 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Booker T. Washington and WEB Du Bois are very comparable yet dissimilar in many ways. Booker T. Washington was not demanding fro African Americans to be treated equally. Washington thought the most reasonable method was for blacks to escape the poverty they were stuck in. WEB Du Bois on the other hand wanted instant black equality and for blacks to be integrated. Du Bois strategy is more useful than Booker T. Washington’s for many reasons.…

    • 643 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    “Family is the most important thing in the world” by princess Diana. Beside family some people have to go to school. They need to management their time in order to complete school work and house work. For children, school is the most important thing for them. When they have time after homework they can help their parents do chores around the house.…

    • 727 Words
    • 3 Pages
    Improved Essays
  • Decent Essays

    S-Corporation Vs S-Corp

    • 255 Words
    • 2 Pages

    Over the long term, XYZ has been quite profitable in its operations as evidenced by the corporation’s substantial accumulated earnings and profits. Unlike a C-Corp, where a distribution is first treated as a taxable dividend, as provided by §301(c), a distribution from an S-Corp is first treated as a return of stock basis or out of the S-Corp’s Accumulated Adjustment Account which both ultimately receives tax-free treatment. As provided by §1367(a)(1), income earned by an S-Corp increases the shareholders' basis in the corporation's stock, and a distribution from those earnings is treated as a tax-free reduction of the shareholders’ previously increased stock basis under §1368. Due to this advantageous treatment provided to S-Corps, it provides…

    • 255 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Brambles has a net deferred tax liability of US$M 522.40 in its statement of financial position which means that the company will pay more income tax in…

    • 929 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    Theorist Paper Maria Montessori vs. Albert Bandura Clarissa L. Eashmond The University of Southern Mississippi Abstract The theorist paper will discuss, compare, and contrast the theories of Dr. Maria Montessori and Albert Bandura. This theorist assignment includes the research of how each theorist began their work, and how children learn according to their ideas and observations.…

    • 1145 Words
    • 5 Pages
    Great Essays
  • Superior Essays

    3-Review of Literature Essay Did Martin Luther King, Mahatma Gandhi and Nelson Mandela all share the same principles, methods and goals? Martin Luther King, Mahatma Gandhi and Nelson Mandela all were influenced by each other and believed in the same non-violence principle. Each leader had different methods they used which were similar and had some success towards their movement. They also had goals that were different but similar because they were all successful and cost them their freedom. Martin Luther King Jr, Mahatma Gandhi and Nelson Mandela principles, methods, and goals are not all the same but were similar in different ways.…

    • 1449 Words
    • 6 Pages
    Superior Essays
  • Improved Essays

    However there are some people that do not know about the positive effects of the tax system, so they might think that it only comes along with negative effects. In fact, not so many people know this but taxes are considered one of the most important sources of revenue for the government and one of the main reasons for developing the country's economy. Still, tax systems widely vary between countries, and it is essential for individuals and corporations to carefully have good knowledge of a new country’s tax laws before earning income or doing any business there. During the course, I became aware of the different types of tax systems, purposes, how to calculate it and how they actually worked.…

    • 1056 Words
    • 5 Pages
    Improved Essays