Everything you need to know about IRPJ (Corporate Income Tax) in 2024 for Brazilian companies. Discover who needs to pay, how to calculate it, deadlines, tax rates, additional contributions, and much more!
What is IRPJ (Imposto de Renda Pessoa Jurídica)?
IRPJ, which stands for Imposto de Renda Pessoa Jurídica (Corporate Income Tax), is a mandatory federal tax for most Brazilian companies. It is levied on a company’s profits with the objective of raising funds for the federal government to finance various public services, such as healthcare, education, infrastructure, and security.
Who Needs to Pay IRPJ?
In general, all companies with an active CNPJ (National Registry of Legal Entities) and that generate revenue or profit need to pay IRPJ. There are some exceptions, such as philanthropic, recreational, cultural, and scientific institutions.
It is important to highlight that IRPJ does not apply to individuals, only to legal entities (companies).
How to Calculate IRPJ
The calculation of IRPJ varies depending on the company’s tax regime:
- Lucro Real (Real Profit): IRPJ is calculated on the net profit recorded by the company in the tax period (monthly, quarterly, or annually). The base tax rate is 15%, with an additional 10% possible on the portion of profit exceeding R$20,000.00 per month.
- Lucro Presumido (Presumed Profit): IRPJ is calculated based on a presumed profit established by the Federal Revenue Service, which varies according to the company’s activity. The base tax rate is 15%.
- Simples Nacional (Simple National System): IRPJ is already included in the DAS payment slip (Documento de Arrecadação do Simples), which also encompasses other federal, state, and municipal taxes. The tax rate varies depending on the company’s revenue bracket.
Deadlines for IRPJ Payment
The deadline for IRPJ payment varies according to the company’s tax regime:
- Lucro Real: Month by month, until the 15th day of the month following the taxable event.
- Lucro Presumido: Quarterly, until the 15th day of the first month following the quarter.
- Simples Nacional: Month by month, until the 20th day of the month following the taxable event.
IRPJ Tax Rates
The base tax rate for IRPJ for all tax regimes is 15%. However, in Lucro Real, there may be an additional 10% on the portion of profit exceeding R$20,000.00 per month.
IRPJ Additional Contribution (Aditamento do IRPJ)
The IRPJ Additional Contribution, also known as “Social Contribution on Profit,” is a federal tax levied on the profits of companies opting for the Lucro Real, Lucro Presumido, or Lucro Arbitrado regimes. The additional contribution rate is 10% on the portion of profit exceeding R$20,000.00 per month.
Penalties for Late IRPJ Payment
Late payment of IRPJ can result in fines and late payment interest. The fine percentage varies depending on the delay period, podendo (potentially) reaching 20% on the amount of tax owed.
How to File IRPJ Without Errors
To avoid errors in calculating and filing IRPJ, it is important to seek the help of a specialized accountant. BPC PARTNERS accountants can advise you on the most appropriate tax regime for your company, assist with calculating the tax, and prepare the tax return.
Companies in good standing with their tax obligations may have access to various benefits, such as credit lines with lower interest rates and participation in public tenders.
IRPJ is a crucial tax for the Brazilian government’s revenue collection. By understanding how IRPJ works and keeping your company’s payments up to date, you can ensure compliance with tax legislation and avoid future problems.
BPC PARTNERS: Your Trusted Tax and Accounting Partner in Brazil
BPC PARTNERS, a tax and accounting company headquartered in São Paulo, specializes in assisting international companies doing business in Brazil. Our team of experienced professionals is well-versed in IRPJ regulations and can guide you through the entire tax compliance process. We offer comprehensive monthly tax and accounting services, ensuring your company remains compliant and avoids penalties. Our team can assist you with various other tax and legal matters, allowing you to focus on your core business operations.
Contact BPC PARTNERS today for a consultation and let our experts help you achieve tax compliance in Brazil. By working with a qualified tax advisor, international companies can minimize their tax burdens and maximize their returns on investment in the Brazilian market.