Paying Taxes in Brazil

This section addresses the taxes and mandatory contributions that medium-sized domestic companies in Brazil must pay in a given year, as well as measures of the administrative burden of paying taxes and contributions.

The country data appearing on this page was collected as part of the Doing Business project, which measures and compares regulations relevant to the life cycle of a small- to medium-sized domestic business in 183 economies. The most recent round of data collection for the project was completed in June 2009.

The table below shows the main indicators for paying taxes. They are:

  • the total number of payments per year;
  • the time it takes to prepare, file, and pay (or withhold) the corporate income tax, the value added tax and social security contributions (in hours per year); and
  • the total tax rate, which measures the amount of taxes and manda¬tory contributions payable by the business in the second year of operation, expressed as a share of commercial profits.

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Tax or mandatory contributionPayments (number)Notes on PaymentsTime (hours)Statutory tax rateTax baseTotal tax rate (% profit)Notes on TTR
ICMS (similar to VAT)1online filing137418.0%value added (including taxes)91.4not included
IPI (similar to VAT)1online filing-20.0%value added (including taxes)84.6not included
PIS/COFINS (similar to VAT)1online filing-9.3%value added39.1not included
Social security contributions (INSS)1online filing49020.0%gross salaries22.6 
Corporate income tax (IRPJ)1online filing73615%+10% (surcharge applies on annual taxable income exceeding R$ 240 thousand)taxable profits15.7 
Payroll tax1online filing-8.8%gross salaries9.5 
Severance contribution (FGTS)0paid jointly-8.5%gross salaries9.2 
Social contribution (CSLL)1online filing-9.0%taxable profits5.6 
Property tax1 -2.5%market value of property3.7 
Financial transactions tax (CPMF)1 -0.4%bank transactions2.8 
Tax on interest0 -20.0%interest income0.5not included
Vehicle tax1 -1.5%market value of vehicle0.1 
Totals:10 2600  69.2 


Notes:

Name of taxes have been standardized. For instance income tax, profit tax, tax on company's income are all named corporate income tax in this table.
The hours for VAT include all the VAT and sales taxes applicable.
The hours for Social Security include all the hours for labor taxes and mandatory contributions in general.