Taxes are complex and pose a major problem as most companies must hire tax professionals to plumb the difficulties. Moreover, tax evasion is a big problem in Brazil (Economist Country Briefings: Brazil 2009). Brazil has a corporate tax rate of only 15% but an additional surtax of 10% and a 9% social security contribution bringing the effective corporate rate to 34% (2009 Index of Economic Freedom). Brazil’s individual tax rates range from 7.5% to 27.5%. By comparison, the United States has a 15% corporate tax and a top tax rate of 35% for individuals. A foreign company within Brazil is automatically granted resident status if it is incorporated within the country. Capital gains are treated as regular income (Complete WorldWide Tax and Finance).