FACTS SHEETS

INTRODUCTION The division of tax authorities between the Federation, the 26 Federal States and the Municipalities is as follows. The Federation has the authority on:

Overview: This profit is the result of consolidated accounting entries, called “Accounting result” adjusted with required additions and deductions (non-deductible expenses and non-taxable incomes) to

List of double taxation conventions (2020): Argentine, Austria, Belgium, Canada, Chile, China, Czech Republic , Denmark, Ecuador, Finland, France, Germany (agreement not in force since

As it is controlled by the Federal States, the rate of Imposto sobre Circulaçao de Mercadorias e Serviços (“ICMS” or Tax on Commerce and Services)

Overview: The PIS (Program of Social Integration) and COFINS (Contribution for the Financing of Social Security) are federal taxes based on the turnover of companies.

  Conditions: This is a simplified calculation of taxable income. This regime is only possible for companies that do not have to select the REAL

  Overview: Labor law is governed by a code called the CLT (“Consolidaçao das Leis do Trabalho”). The INSS (National Institute of Social Security) manages

Since it is controlled by the Federation, the IPI rate is identical throughout the Brazilian territory, but varies according to the product. SCOPE The IPI

Conditions: This method is an option for small and medium-sized enterprises. It is easy to apply and the tax rates are relatively low. Many conditions

GENERAL INFORMATION ON THE IOF IOF stands for Imposto sobre Operações Financeiras, and is usually translated as the Tax on Operations of Credit, Exchange and

  Since it is controlled by the Municipalities, the rate of Imposto Sobre Serviços (“ISS” or Tax on Services) is variable depending on the Municipality

Overview: There are plenty of cases of withholding taxes. In order to fight against tax evasion and to fasten the collection of taxes – in