ISS, short for Imposto Sobre Serviços de Qualquer Natureza in Portuguese, is imposed by municipal government on sale of services. It is a sales tax, mostly owed by businesses selling any type of service, from basic to professional services. It is not allowed to consider the tax on the purchase invoices as input tax and deduct Read more…
IPI, short for Imposto sobre Produtos Industrializados in Portuguese, is imposed by the federal government on the shipment of manufactured goods. It is a Value-added tax, mostly owed by manufacturers that turn raw materials, into another product by manual labor or machines, such as chemical, electronic, tobacco, and textile industries. Wholesale and retail companies usually are not subject to IPI. Read more…
ICMS, short for Imposto sobre operações relativas à circulação de mercadorias e sobre prestações de serviços de transporte interestadual e intermunicipal e de comunicação in Portuguese, is imposed by state governments on distribution of goods and specific services such as transportation and communication. It is a Value-added tax, mostly it is owed by manufacturers and wholesale Read more…
IRPJ, short for Imposto sobre a Renda das Pessoas Jurídicas in Portuguese, and CSLL, short for Contribuição Social sobre o Lucro Líquido in Portuguese, are both imposed by the federal government on corporate income. These combined are the Brazilian income taxes for business, different from other countries which have one tax on income. States and Read more…
Individual entrepreneurs with gross revenues that does not exceed BRL 81,000.00 per year can register their business as Individual Micro-Entrepreneur (MEI), Microempreendedor Individual in Portuguese. This allows entrepreneur to establish a company and create a Brazilian Tax ID number. In order to register as a MEI, the entrepreneur must Read more…
Brazilian companies struggle to be in compliance with taxation and bureaucracy. To make this less painful, the government created the Simple Tax System, Simples Nacional in Portuguese, for micro and small businesses. The goal of this system is to consolidate different taxes and reduce the number of tax reports. The Simple Tax System is not applicable Read more…
There are several Identification numbers in Brazil that both companies and individuals are required to have. IDs for Business CNPJ (Cadastro Nacional da Pessoa Jurídica) is the Federal Tax Identification Number, a fourteen-digit number used as a tracking number by the Department of Federal Revenue of Brazil (Secretaria da Read more…
There are several taxes withheld in Brazil and sometimes it is hard to know which tax should be withheld. These taxes withheld are only applicable to services and employee wages. There is usually no tax withheld when a good is sold. Individuals as employees, independent contractors, and businesses are Read more…
As you may be aware, In Brazil there are several types of reports and books that are required: Monthly tax books: Registro de Entradas (Inbound Invoices report): It reports all inbound invoices such as purchase, import, inbound transfer, etc. This also reports the input taxes as ICMS and IPI. Read more…
In Brazil there are several types of invoices that are required depending on the type of business you have. Different from what usually happens in other countries where the business can choose the best template to create an invoice, in Brazil there are specific templates for each type of Read more…