Brazil levies taxes across three levels of government: Federal, State, and Municipal. Companies operating in Brazil must choose between tax regimes such as Lucro Real or Lucro Presumido based on annual revenue and sector requirements.
Tax Hierarchy Overview
- Federal Taxes: IRPJ (Corporate Income Tax), CSLL (Social Contribution on Net Profits), IPI (Industrial Products Tax), PIS/COFINS (Gross Revenue Social Contributions).
- State Tax: ICMS (State Value-Added Tax on goods, communications, and interstate transport).
- Municipal Tax: ISS (Municipal Service Tax levied on professional services).