Brazil Tax Guide

Brazil

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.

Corporate Taxation

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

Personal Taxation

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

Email:
Marcelo Martins: marcelo@prime-consultoria.com