HomePage | Contact Us | About Us
Google
Web worldwide-tax.com

Brazil Tax Laws and Tax System



eTaxJobs - the World's largest tax jobs portal









Brazil Income Taxes


(Last updated, September 2007)

Individual Income Tax: Brazil's individual income tax rates for 2007 are 15% and 27.5%.

Personal annual tax rates (BRL)


Income (BRL) %
1-15,764 -
15,764-31,501 15
over 31,501 27.5


Corporate Tax: Brazil's corporate tax rate for 2007 is 34%.The tax consists of a basic tax of 15%. There is also a surtax of 10% for annual income of over BRL 240,000, about $ 110,000. Additonal 9% are added for social contribution on net profits.
Capital Gains: Capital gains of companies are added to the regular income.


Residence

A foreign company is resident if incorporated in Brazil.
An individual is resident when holding a permanent visa, or a temporary visa with an employment agreement, or even without an employment agreement, when staying in Brazil for more than 183 days within 12 months.




Brazil Tax Deductions

  • Losses are carried forward indefinitely. In future years only 30% of the current year taxable income can be set off against the loss.
  • Depreciation is deducted using the straight line method. Companies working in 2 shifts can claim 150% of the standard rates, while companies working in 3 shifts are entitled to 200% of the standard rates.
  • Companies involved in development of technical research can use accelerated depreciation for tax purpose.
  • There is no company consolidation for tax purpose.


Brazil Personal Credits and Deductions

For Brazilian residents, the first annual income of BRL 15,764 is tax exempt.
There is a standard monthly deduction for each dependant.
Education expenses are deductible, up to a limit.
Deductions are also permitted for social security payments by an employee, payments to private Brazilian pension plans, up tp a limit, and for alimony payments.


Deduction of Tax at Source

In Brazil tax is deducted at source from the following payments to non residents:
Dividend- 0%.
Interest- 15%.
Royalties- 15%.


Social Security

The contributions by the employer and the employee are subject to to ceiling defined by law.

Employer: 37.3% of the gross salary, 28.8% social security and 8.5% for severance fund.
Employee: 7.65%-11% of the gross salary. The employee's payment, which is capped, is based on a "contribution salary table", provided by the government.





Austria Income Taxes and Tax Laws | Brazil Income Taxes and Tax Laws | Bulgaria Income Taxes and Tax Laws | China Income Taxes and Tax Laws | Cyprus Income Taxes and Tax Laws | Czech R. Income Taxes and Tax Laws | Estonia Income Taxes and Tax Laws | Finland Income Taxes and Tax Laws | Germany Income Taxes and Tax Laws | Greece Income Taxes and Tax Laws | Hungary Income Taxes and Tax Laws | India Income Taxes and Tax Laws | Ireland Income Taxes and Tax Laws | Israel Income Taxes and Tax Laws | Italy Income Taxes and Tax Laws | Japan Income Taxes and Tax Laws | Latvia Income Taxes and Tax Laws | Lithuania Income Taxes and Tax Laws | Malta Income Taxes and Tax Laws | Montenegro Income Taxes and Tax Laws | Poland Income Taxes and Tax Laws | Portugal Income Taxes and Tax Laws | Romania Income Taxes and Tax Laws | Russia Income Taxes and Tax Laws | Serbia Income Taxes and Tax Laws | Slovakia Income Taxes and Tax Laws | Slovenia Income Taxes and Tax Laws | Turkey Income Taxes and Tax Laws | UK Income Taxes and Tax Laws | Ukraine Income Taxes and Tax Laws

Brazil Banks and Banking Sites in Brazil | Brazil Double Taxation Prevention Treaties | Brazil Lawyers Law Firms and Legal Services | Brazil Tax Laws and Tax System | Brazil V.A.T. and Other Taxes | Sao Paulo Luxury Hotels, Four and Five Star Hotels in Sao Paulo, Brazil