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Brazil Income Taxes(Last updated, September 2007) Individual Income Tax: Brazil's individual income tax rates for 2007 are 15% and 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. ResidenceA 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
Brazil Personal Credits and DeductionsFor 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 SourceIn Brazil tax is deducted at source from the following payments to non residents:Dividend- 0%. Interest- 15%. Royalties- 15%. Social SecurityThe 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. |