Brazil
Taxation in Brazil
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Taxation in Brazil
Income tax
- Up to BRL 17,275: 0%
- BRL 17,276 - 25,800: 7.5%
- BRL 25,801 - 34,400: 15.0%
- BRL 34,401 - 42,984: 22.5%
- Over BRL 42,984: 27.5%
Notes:
Names of taxes have been standardised. For instance income tax, profit tax, and 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 labour taxes and mandatory contributions in general.
Imposto de Renda - Income tax
This varies from year to year but in 2005 Brazilians earning less than R$13,968 were income tax exempt but had to provide proof of income. Brazil has its version of national insurance, covering medical costs etc., and Brazilians can download some free software that enables them to calculate their tax from their earnings, and complete tax returns via the web. When you plan to set up in Brazil, printing the relevant tax information and getting it translated would be a good idea.
IPVA - Imposto Sobre a Propriedade de Veiculos Automotores (Motor Vehicle Tax)
Car tax is the same as in the UK, in that it is legally required yearly. The exact rate is variable depending on which state you're in (as are many taxes). It's based on the age and market value of the vehicle.
ICMS - Impostos Sobre Circulacao de Mercadorias e Prestacao de Servicios (Taxes on Goods and Services)
This is a little like VAT in the UK, but not the same. All businesses are subject to this cost, and pass it on to the customer with notification. Exemptions relevant to Brazilian consumers are newspapers, magazines and books.
ISS - Imposto Sobre Servicios (Tax on Services)
This is paid by the owners of businesses and self-employed individuals.
IPTU - Imposto Sobre Propriedade Territorial Urbana (Tax on Urban Property)
This is paid for all domestic properties and is based on the value of the house, flat etc.
Both of the above are again variable with whichever state you settle in.
