Brasil flag Brasil: Entorn econòmic

Impostos al Brasil

Tax Rates

Consumption Taxes

Nature of the Tax
ICMS (Tax on the circulation of goods and services), IPI (Tax on industrialized products), ISS (Tax on services), PIS-PASEP (Employees’ Profit Participation Program), and COFINS (Social Contribution for Social Security Financing).
Tax Rate
  1. ICMS rates vary across states from 0% to 35%. The standard rate is 18% in Sao Paulo and 20% in Rio de Janeiro. Special rates apply to interstate sales (from 2019, the interstate ICMS is levied exclusively by the state of destination)
  2. IPI rates vary on how essential the product is considered to be, from 0% for the most essential and 300% for 'superfluous' or luxury items. The IPI tariff table contains more than 9,700 different classification codes and follows the Brazilian External Tariff Code (BTEC)
  3. ISS varies across municipalities, generally from 2% to 5% (maximum rate set by law)
  4. PIS-PASEP is 0.65% for taxpayers under the cumulative system and 1.65% for taxpayers under the non-cumulative system. Certain companies and products receive special tax treatment (such as the automotive industry which pays PIS-PASEP at a rate of 2% and COFINS at a rate of 9.6% on specific products).

Consult the Guide on Brazilian VAT to find import duty and taxes which apply to your product.

Reduced Tax Rate
For ICMS, generally lower rates apply to interstate sales, with a 4%, 7%, or 12% rate (depending on the location of the supplier and client) applied on all interstate sales of imported goods.
COFINS and PIS may be reduced in certain circumstances (for example for financial revenues), and some transactions are exempt (e.g. exportation of services or assets fulfilling certain requisites).
Reduced rates generally apply to items of basic necessity (e.g. IPI applies at 0% to wheat and rice flour, 8% to pipes and 300% to luxury products; horticultural products and wheat flour are PIS-PASEP and COFINS zero-rated).
Other Consumption Taxes
A tax on industrialised products (IPI) is also collected. An excise duty levied at the federal level, it applies to almost all sales and transfers of goods manufactured or imported in Brazil. The IPI rate can vary between 0% and 300% (between 5% and 15% on average). The least taxed products are basic foodstuffs, while the most taxed are alcohol and cigarettes.

A municipal property transfer tax (ITBI) is levied on the transfer of immovable property, with different rates according to the municipality in which the property is located.

PIS and COFINS are levied on imports at rates of 1.65% and 7.6%, respectively, for the import of services; and 2.1% and 9.65%, respectively, on importation of goods.

Return to top

Corporate Taxes

Company Tax
15% - using either the "actual profits" method (APM) or the "presumed profits" method (PPM)
Tax Rate For Foreign Companies
Brazilian resident companies are subject to taxation on their worldwide income. Non-resident companies are generally taxed in Brazil through a registered subsidiary, branch, or permanent establishment, on their Brazilian-sourced income. Non-resident companies may also be subject to withholding tax (IRRF) on Brazilian-sourced income.
Capital Gains Taxation

Capital gains are treated the same way as ordinary income (subject to restrictions on the offsetting of capital losses against ordinary profits in certain cases).

Capital gains derived by a non-resident on an investment registered with the central bank are subject to progressive rates, as follows:

  • 15% until BRL 5 million;
  • 17.5% from BRL 5 million to BRL 10 million;
  • 20% from BRL 10 million to BRL 30 million;
  • 22.5% over BRL 30 million
  • a 25% rate applies if the gains are derived by a resident of a tax haven.
Main Allowable Deductions and Tax Credits
In principle, all the expenses necessary for company activity are deductible. Start-up and pre-operational expenses may be deferred and amortised on a straight-line basis over a period of minimum five years. R&D expenditures may be deducted when incurred or deferred until termination of the project and then amortised over a period of not less than five years, at the company's choice. Losses on bad debts are tax-deductible (conditions apply), except for those arising from inter-company transactions. Charitable contributions are deductible if the recipients are registered as charitable institutions (limits apply). Expenses of group medical care and health insurance programmes for employees, as well as contributions to private supplementary pension schemes, are considered deductible if supplied to all employees indiscriminately. When properly documented and substantiated, travel expenses related to business activities can be deductible. Taxes, contributions and related costs are generally deductible on an accrual basis.

Tax losses can be carried forward indefinitely. Nevertheless, the loss carry-forward is capped at 30% of taxable income (before the deduction of net operating losses). Loss carryback is not permitted.
Exemptions and reductions of corporate income tax are provided for businesses in certain less developed areas. Foreign tax credit is available for resident companies on foreign income tax paid, generally limited to the amount of CIT and SCT on the foreign income.

Other Corporate Taxes

There are numerous other taxes levied in Brazil, including:

  • Municipal Property Tax (IPTU): levied annually based on the fair market value of property in urban areas. Rates depend on the municipality and location of the property
  • Municipal property transfer tax (ITBI): levied on the transfer of immovable property, with rates varying according to the municipality where the property is located
  • Tax on Financial Operations (IOF): levied on certain financial operations, such as loans, foreign exchange operations, insurance, and securities, as well as operations with gold (as a financial asset) and foreign exchange instruments. The applicable rate will vary depending on the operation, with the general rate set at 0.38% (for cross-border loans of less than six months, the rate is 6% of the principal amount)
  • Social Integration Programme (PIS) tax: a federal social contribution calculated as a percentage of revenue; it is levied at the rate of 1.65% (which may be reduced under certain circumstances)
  • Social Security Financing Contribution (COFINS): a monthly federal social assistance contribution calculated as a percentage of revenue, is levied at the rate of 7.6%
  • Import Tax: rates generally vary between 10% and 20% (the maximum being 35%)
  • PIS and COFINS on imports: 1.65% and 7.6% on the import of services, respectively; 2.1% and 9.65%, respectively, on importation of goods
  • Municipal Service Tax (ISS): imposed on a cumulative basis (it is not creditable), and the rates may vary between 2% and 5%, depending on the type of service (rates to be stipulated on a municipal basis)
  • Social Security Contribution (INSS): generally levied at a rate of 20% over the employees’ payroll
  • Severance Pay Indemnity Fund (FGTS): levied on employee’s salary at the rate of 8%
  • Contribution for Intervention in the Economic Domain (CIDE): levied at the rate of 10% on remittances made by corporate taxpayers for royalties and for administrative and technical services provided by non-residents.
Other Domestic Resources
Doing Business: Brazil, to obtain a summary of taxes and mandatory contributions

Country Comparison For Corporate Taxation

  Brazil Latin America & Caribbean United States Germany
Number of Payments of Taxes per Year 9.6 28.2 10.6 9.0
Time Taken For Administrative Formalities (Hours) 1,501.0 327.5 175.0 218.0
Total Share of Taxes (% of Profit) 65.1 46.8 36.6 48.8

Source: Doing Business, Latest available data.

Return to top

Individual Taxes

Tax Rate

MONTHLY Taxable Income Rates (2022)
Below BRL 1.903,98 0%
From BRL 1.903,99 to 2.826,65 7.5%
From BRL 2.826,66 to 3.751,05 15%
From BRL 3.751,06 to 4.664,68 22.5%
 Over BRL 4.664,68 27.5%
Allowable Deductions and Tax Credits
When calculating monthly tax liability, the following expenses are deductible: social security and pension contributions to government entities, alimony and pension amounts decreed by court, dependent allowance (determined every year), tuition expenses (up to BRL 3.561,50 per dependant), medical expenses, contributions made by the taxpayer to the official social security system, private pension contributions (if the entity is located in Brazil) made by the beneficiary and for one's dependents (capped at 12% of gross taxable income). Some deductions, such as those for dependants, alimony, and Brazilian official social security contributions are allowed on a monthly basis.

Some items can be deducted from the tax due rather than from the calculation base, such as: donation made to official government, state, and/or municipal child care entities and elderly fund; certain qualified contributions to cultural, audio-visual, and sports projects (capped at 6% of the tax due); contribution to health programs related to cancer and mentally handicapped support (capped at 1% of the tax due); private pension contributions made by the beneficiary and for one's dependents (capped at 12% of gross taxable income).

When calculating annual federal income tax liability, instead of itemised deductions taxpayers may elect for a standard deduction of 20% (up to BRL 16,754.34 in 2022, with this amount being reviewed each year).

Individuals with a business income (non-employees) may deduct the expenses necessary to produce the business' revenue, investments and expenses to maintain the business, and payments made to third parties who have an employment relationship with the respective payroll charges.

Special Expatriate Tax Regime
Resident individuals are taxed on their worldwide income. Non-residents are taxed only on income from Brazilian sources.

Non-residents of a non-treaty country are liable for a flat rate of 25% tax on their income earned in Brazil (no deductions are allowed). Rental income received from a property located in Brazil is taxed at 15%. Income received abroad by non-residents is tax exempt.

Return to top

Double Taxation Treaties

Countries With Whom a Double Taxation Treaty Have Been Signed
Withholding Taxes
Dividends: 0%; Interest: 15%/25% (for residents in tax havens); Royalties: 0% (for residents)/15% (for non-residents)/25% (for residents in tax havens).
Bilateral Agreement
Spain and Brazil signed a Double Taxation Treaty.

Return to top

Return to top

Vols fer algun comentari sobre aquest contingut? Escriu-nos.

 

© Export Entreprises SA, Tots els drets reservats.
Actualitzacions: September 2022

Return to top