Hiring interns is a smart strategy for small businesses looking to reduce labor costs and enjoy tax benefits. In Brazil, companies that hire interns legally pay fewer employment taxes and avoid common payroll expenses.
This article will explain how hiring interns can reduce tax burdens and how to comply with labor laws.
1. Tax Benefits of Hiring Interns
✔ No Payroll Taxes (FGTS, INSS, or Severance Pay) – Interns are not considered full employees.
✔ Lower Salary Costs – Intern stipends are usually lower than regular employee salaries.
✔ Flexible Contracts – Internships can last up to two years, reducing long-term commitments.
💡 Tip: To qualify for these tax benefits, the internship must be formalized with a signed agreement through an educational institution.
2. How to Hire an Intern Legally
✔ Step 1: Ensure the candidate is enrolled in a higher education or technical course.
✔ Step 2: Sign an internship agreement involving the student, company, and school.
✔ Step 3: Provide educational training aligned with the intern’s studies.
✔ Step 4: Pay a monthly stipend and offer accident insurance (mandatory).
3. Who Should Consider Hiring Interns?
✔ Small businesses that need extra help without high payroll costs.
✔ Entrepreneurs looking to train future employees while reducing tax expenses.
✔ Companies that qualify for internship tax incentives in their industry.
4. Final Thoughts
Hiring interns is a cost-effective way to expand a team while reducing tax obligations. By following legal guidelines, businesses can benefit from skilled workers without incurring high payroll costs.
