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Doing Business in Brazil
corresponding to royalties, trademark and patent licenses and assignments, agreements involving transfer of know-how and/or technology, as
well as of fees for technical services, administrative assistance and other similar services that do not involve the transfer of technology.
The CIDE is levied at 10% over
the total amounts paid, credited, delivered, used or remitted abroad.
5.6. Contribution on Fuels (CI- DE-Fuels)
CIDE-Fuels is a Federal Contribution on Economic Domain, levied on the importation and commercialization of certain types of fuel at fixed amounts in Brazilian Reais. Currently CIDE is
Monthly income (R$) Rate
Up to 1,903,98 Exempt
From 1,903.99 to 2,826.65 7.5%
From 2,826.66 to 3,751.05 15%
From 3,751.06 to 4,664.68 22.5%
From 4,664.68 onwards 27.5%
In addition, the Brazilian companies are required to withholding the social security due by the employees and individuals themselves, at rates varying from 8% to 11% of his income, limited to R$ 642.34 (for fiscal year 2019).
6.2. Payment to Local Companies in Brazil
levied on gasoline (and its chains) at R$ 100/m2; other listed products benefit from a zero-rate reduction.
6. Withholding Obligations
6.1. Payment to Employees and Individuals
Brazilian companies are required to withhold the personnel income tax due by employees and individuals upon payment of the income of any kind.
Personnel income tax levies at progressive rates varying from zero to 27.5% according to the individual’s monthly income. For the fiscal year of 2019, the values are the following:
Standard value to be deducted (R$)
-
142.80
354.80
636.13
869.36
Brazilian tax legislation imposes withholding obligation on the provision of goods and/or certain services to other legal entities in Brazil. The rules are different if the customer qualifies as a private or a public company.
• Customers qualifying as private entities: The payment or credit of specific services fees, such as the
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