The IRPJ (Corporate Income Tax) is a mandatory federal tax for all active CNPJ-registered companies, with some exceptions. The tax base varies by the company’s tax regime, applying specific rates accordingly. The IRPJ can be calculated monthly, quarterly, or annually. Non-compliance results in interest and fines.
The IRPJ is a federal tax that companies must pay. Understanding it is essential for good financial management.
What is the IRPJ?
The IRPJ, as outlined in Article 153, Section III of the Federal Constitution, is levied on the profits of legal entities (companies).
Depending on the company’s tax regime, the IRPJ may be based on revenue or presumed profit. Companies under the Actual Profit regime pay based on actual profit, with higher rates and specific rules. Those under the Presumed Profit regime pay based on a presumed profit determined by the Federal Revenue. Companies in the Simples Nacional regime have the IRPJ included in the DAS (Simplified Tax Collection Document).
IRPJ Rate Table – Presumed or Arbitrated Profit
| Predominant Economic Activity | Presumption Percentage | IR Rate | Direct Percentage |
|---|---|---|---|
| Fuel and Derivatives Retail | 1.6% | 15.0% | 0.24% |
| General Services | 32.0% | 15.0% | 4.8% |
| Commercial Banks | 16.0% | 15.0% | 2.4% |
| Construction with Materials | 8.0% | 15.0% | 1.2% |
How to Calculate the IRPJ
One effective way to ensure accurate IRPJ calculations is by having an accountant. This support is mandatory for all companies except for the MEI (Individual Microentrepreneur). An accountant helps avoid mistakes and ensures all tax obligations are met.
Who Must Pay the IRPJ?
All companies with an active CNPJ generating revenue or profit must pay the IRPJ. Exceptions include philanthropic, recreational, cultural, and scientific organizations. The IRPJ should not be confused with the IRPF (Personal Income Tax), which applies only to individuals.
Companies Required to Pay the IRPJ:
- Legal entities domiciled in Brazil, including branches of foreign entities.
- Public companies, mixed-economy companies, and their subsidiaries.
- Consumer cooperatives purchasing and supplying goods to consumers.
- Individual companies and entrepreneurs established according to the Civil Code.
IRPJ Calculation Periods
The IRPJ can be calculated monthly, quarterly, or annually. The key is to meet all declaration and payment deadlines.
IRPJ Calculation Base
The IRPJ rate for companies taxed under Actual Profit, Presumed Profit, and Arbitrated Profit is 15% on the calculated profit. For companies engaged in specific public services, the rate is 6%.
Additional IRPJ
An additional 10% is levied on the profit portion exceeding R$ 20,000 per month. This applies to companies under the monthly Actual Profit, annual Actual Profit, and Presumed or Arbitrated Profit regimes.
Late Payment Penalties
Late payment incurs fines ranging from 2% to 20% of the profit. Errors in provided information also result in penalties.
Purpose of the IRPJ
The IRPJ funds public projects and promotes social development, improving sectors like transportation, health, education, and security.
