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Currently, Brazil has tax treaties to avoid double taxation with the following countries:Īssessment based on credit and exchange operations and insurance premiums. (*) Rates vary due to the existence of tax treaties to avoid double taxation between Brazil and the country where the beneficiary of the income is domiciled. Payments to non-identified beneficiaries 35% Income and Capital Gains of Foreign Residents 15% (*) Technical Assistance, Cost Sharing, Know How 15% (*) Imposed on profits, income and capital gains. (3) WITHHELD INCOME TAX (TAXED AT SOURCE - IRF)
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The tax is not deductible from the its own taxable basis. (b) Additional (valid only for the 1996 calendar year):ġ0% on Real Profit in excess of R$ 240,000Īssessment based on net profits during period on an estimated or real monthly basis. In other words, these taxes are similar to Value Added Taxes (VAT).Ĭorporate entities are subject to the following taxes:Īssessed on net profits during period on an estimated or real monthly basis.ġ5% - nominal rate imposed on taxable profits (Real Profit)
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NOTE: Since ICMS and IPI are imposed on the "aggregate value", in calculating the amount of tax due, the tax paid upon importation or the immediately prior operation are discounted. In some states this rate is 17%.ħ% or 12%: inter-state rate on sales to other ICMS taxpayers. The basis of calculation is the value of the operation.ġ8%: normal intra-state rate, adopted by the majority of the Brazilian states. (2) Sales Tax (Tax on Operations relating to the Circulation of Merchandise and the Rendering of Interstate and Intermunicipal Transport and Communications Services - ICMS) Rate: variable depending on the type of product, in accordance with the IPI Tax Table -TIPI. The basis of calculation of the IPI on the internal market is the price of the operation (including ICMS), triggered upon the dispatch from the producer of the industrialized product. The taxes imposed on internal market operations are as follows (in the order of their imposition): This tax is calculated over the value of international maritime freight. (4) Addition to Freight for the renewal of the Merchant Marine (AFRMM) upon dispatch from the importer's premises, the price of the operation.ġ8% : normal rate adopted by the majority of the Brazilian states.