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…