Page 112 - InvestmentGuideBrasilEng

Main Taxes and

Contributions in Brazil

SERVICES PRODUCTS SERVICES AND PRODUCTS
IRPJ – Corporate Income Tax
ISS – Service Tax - 2% ICMS – Value-added Tax on Sales and Services - – At a rate of 15%, plus a 10%
and 5% (depend- Intra-State and Interstate: 7% and 12%, respectively. additional rate on monthly
ing on the type of Imports: 4% (the final manufactured product must income that exceeds BRL
service). feature more than 40% imported parts/components).
24,000. PROPERTY
PIS – Social Contribution on
GrossRevenue – Presump-
IPI – Excise Tax – Ranging from 0% to 330%
INSS – Social Security tive Profit – Cumulative
Contribution - 11%. (depending on how essential the product is and in Regime: 0.65%Taxable Profit
conformity with the IPI Tax Rates Table - TIPI ). AND LAND
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– Non-Cumulative Regime:
1.65%.
Cofins – Social Contribution
II – Customs Duties - * Foreign Merchandise – Indi- Tax Presumptive Profit – Cu-
cated in the Common External Tariff (TEC), usually mulative Regime: 3%Taxable
ranging from 0% to 35%. * Baggage – 50% Profit – Non-Cumulative
Regime: 7.6% .

IE – Export Tax – 30% but it may be raised or low-
CSLL – Social Contribution
ered to meet the objectives of Brazil’s exchange rate Tax on Profit - 9%. Financial
and foreign trade policies. The maximum rate may
be raised up to 150%. Institutions: 15%.
IOF – Tax on Financial Transactions - Ranging Foreigners may acquire real property in Brazil and translated into Portuguese by a sworn
from 0% to 25% (depending on the transaction ).
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no local partner is needed. However, there are translator and authenticated by the Brazilian
some limitations and/or fees applicable for specif- Consulate in the country of origin; and a valid
ic areas, such as marine land, islands, rural land passport or National Registry of Foreigners
PAYROLL PROPERTY and areas near Brazil’s international borders. (RNE) card. If the foreign purchaser is married,
Brazilians and foreigners have almost equal the spouse’s CPF must also be submitted.
FGTS – Employee Severance Indemnity Fund IPTU – Property Tax - There is no minimum or maxi- rights when it comes to leasing or acquiring real
Contribution – 8%. mum rate established in federal law (it is therefore estate. ? It is recommended that investors choose a
established by each municipality). Escalation crite-
INSS – Social Security Contribution – 20%. ria: location, value, use and social function. All properties must be registered with a pri- member of CRECI, the professional organization
vate notary public (Cartorio de Registros Imo- regulating professional property managers
SAT/RAT – Occupational Environmental Risks – ITR – Rural Property Tax - Ranging from 0.03% to biliarios) located in the same jurisdiction as the and real estate brokers, as a real estate agent;
1% and 3%. 20% (depending on land area and degree of land use). property. The real estate registry is such that each
Contribuicao de Terceiros – Third Party Con- ITBI – Tax on Sale or Transfer of Properties - There property can only be registered at one registry, ? Local legal support is not necessary, but is
tribution Taxes – SESI/SESC Social Programs, is no minimum or maximum rate established in feder- which stores its entire transaction history and recommended.
SENAI/SENAC Training Programmes, SEBRAE al law (it is therefore established by each municipali- physical identification. All information about a
Program for Small Companies and INCRA Supple- ty). Single rate, non-progressive regime. property is public and the registry costs vary de- Currently, foreign investors without a perma-
mentary rural pension – 3.1%. pending on the state the property is purchased in. nent visa cannot get a Brazilian mortgage. How-
Acquiring real estate in Brazil requires follow- ever, the domestic mortgage market in Brazil is
ing these steps: reforming and developing and with the levels of for-
eign interest in property purchases in recent years,
? Buying a property requires a CNPJ/CPF it is entirely possible that finance for foreigners will
(Company/Personal Taxpayer Identifications, become available at some point in the future.
10 Available in Portuguese at: http://www.receita.fazenda.gov.br/
aliquotas/TabIncidIPITIPI.htm. respectively), both of which are provided by
11 For further details (in Portuguese), go to: http://www.receita.
fazenda.gov.br/aliquotas/impcresegcamb.htm. the Federal Revenue Service; a birth certificate
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