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Tax Overview
Brazil is a civil law jurisdiction, meaning that taxes and contributions are provided under statutory rules.
Brazilian tax framework is provided under the Brazilian Constitution. Accordingly, Brazilian taxes and contributions are levied at Federal, State and Municipal levels.
The corporate taxations are mainly levied at the Federal level. For the indirect taxes, Brazilian Federal Constitution has segregated the taxation over manufacturing, sale of
goods and services among Federal, State and Municipality levels.
In addition, there are taxes levied over financial transactions, ownership and transference of properties,
social welfare contributions, social contributions on economical domains, among others.
Brazilian tax legislation also requires the compliance with different tax basis, withholding obligations and tax compliance.
1.Corporate Taxation
1.1. Corporate Income Taxes (IRPJ and CSLL)
The Corporate Income Tax (IRPJ) and the Social Contribution on Net Profits (CSLL) are due by all companies
in Brazil. There are two main methodologies for corporate income taxes accrual: the real profit basis or the presumed profit basis.
• Real Profit: Under this methodology, the IRPJ is levied over the company’s net profits, assessed
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