The Brazilian tax authorities levy taxes on some types of investment income such as interest, rent on real estate and realized capital gains. Variable Income Tax on Capital Gains (stocks) The Department of Federal Revenue of Brazil, English for Secretaria da Receita Federal do Brasil, levies taxes on realized capital gains. Read more…
IRPF, short for Imposto sobre a Renda das Pessoas Físicas in Portuguese, is imposed by federal government on individual income. States and cities in Brazil do not levy income taxes. An income tax return must be filed every year by business and individuals. Who is required to file a tax return? It will depend on your Read more…
ISS, short for Imposto Sobre Serviços de Qualquer Natureza in Portuguese, is imposed by municipal government on sale of services. It is a sales tax, mostly owed by businesses selling any type of service, from basic to professional services. It is not allowed to consider the tax on the purchase invoices as input tax and deduct Read more…
IPI, short for Imposto sobre Produtos Industrializados in Portuguese, is imposed by the federal government on the shipment of manufactured goods. It is a Value-added tax, mostly owed by manufacturers that turn raw materials, into another product by manual labor or machines, such as chemical, electronic, tobacco, and textile industries. Wholesale and retail companies usually are not subject to IPI. Read more…
ICMS, short for Imposto sobre operações relativas à circulação de mercadorias e sobre prestações de serviços de transporte interestadual e intermunicipal e de comunicação in Portuguese, is imposed by state governments on distribution of goods and specific services such as transportation and communication. It is a Value-added tax, mostly it is owed by manufacturers and wholesale Read more…
PIS/PASEP, short for Programas de Integração Social e de Formação do Patrimônio do Servidor Público in Portuguese, and COFINS, short for Contribuição para o Financiamento da Seguridade Social in Portuguese, are both imposed by the federal government on gross revenue, independently of the source, for the majority of entities and on payroll for some businesses. Read more…
IRPJ, short for Imposto sobre a Renda das Pessoas Jurídicas in Portuguese, and CSLL, short for Contribuição Social sobre o Lucro Líquido in Portuguese, are both imposed by the federal government on corporate income. These combined are the Brazilian income taxes for business, different from other countries which have one tax on income. States and Read more…
There are several taxes withheld in Brazil and sometimes it is hard to know which tax should be withheld. These taxes withheld are only applicable to services and employee wages. There is usually no tax withheld when a good is sold. Individuals as employees, independent contractors, and businesses are Read more…
The Brazilian tax code (CTN, short for Código Tributário Nacional in Portuguese), Law 5,172/1966, is a domestic law published on October 25th, 1966 and organized into two parts. The first part has six titles and the second has four titles. It is the basic rule for all taxes created in Brazil. Read more…
The complexity of the Brazilian tax system is a huge concern of Brazilian accountants and tax advisors. They are aware of their complications. For some companies and individuals, the tax bill is a nightmare. The Brazilian tax system has several types of taxes and they are grouped into Goods and Read more…