Currency: Brazilian Real
Foreign Exchange Control: Generally no, although records must be filed with the bank.
Accounting Principles: IFRS applies.
Business Entities: Principally, limited liability company and joint stock company.
Residence: A business is a resident if it is incorporated in Brazil.
Basis: Resident companies are taxed on worldwide income. Foreign companies are subject to Brazilian tax depending on certain sales stipulations.
Rate: Corporate income tax is 15%.
Foreign Tax: Foreign tax credit is available for foreign sourced income.
Other: Some tax relief on R&D.
Tax Year: Calendar year
Residence: Residents taxed on worldwide income, non-residents taxed on Brazilian-source income only (resident if employed and have a visa or spend > 183 days in residence within a 12 month period).
Rate: Progressive up to 27.5%
Capital Gains: Capital gains are subject to a 15% rate.
Other: Inheritance tax varies depending on the state.
Real property tax: See corporate tax section above.
Social security: employees 8% – 11%, employers 9%
VAT: IPI is an excise tax that is on average 20%. ICMS is a state
VAT Tax: Ranging from 4% to 25%.
Member Firm: Prime Consultoria
Marcelo Martins: email@example.com