As the largest country in Latin America, Brazil has an extremely complicated tax system, with a total of more than 70 types, which are divided into three levels of federal, state, and municipal taxes. At the same time, various social expenses must be paid.

1、Federal tax

1.1 Income tax Imposto de Renda: divided into corporate income tax IRPJ: paid quarterly, the tax rate is generally 15%; Personal income tax IRPF, exempt from payment of monthly income of R$900, 15% between R$900 and R$1,800, 27.5% above R$1,800 and IRRF at source, taxes levied on labor profits, advertising income, lottery profits

1.2 Industrial product tax IPI: This tax is paid by industrial production enterprises, and imported goods are paid by the importer in the import customs clearance process, the tax rate is between 0-50%, according to the NCM and IPI tax rate table, the tax base is CIF CIF plus tariff II
1.3 Import Duty II: The tax rate is between 1-30%, and the tax base is CIF of the goods
1.4 Export duties IE: In order to incentivize exports, export taxes are levied in a very narrow scope
1.5 Financial Action Tax IOF: A 2% tax rate on financial transactions such as credit, foreign exchange, insurance and securities
1.6 Provisional Financial Circulation Tax CPMF: Also known as cheque tax, the tax rate is 0.38%
1.7 Agricultural Land Tax ITR: The tax is calculated on the user of agricultural land, and the tax is calculated on the basis of the value of the land used itself, between 0.03% and 20%.

2、State tax

2.1 Turnover tax ICMS: also known as commodity circulation service tax, the tax rate is mostly 17%-19%, and the tax generated in the sales and circulation of goods, including gift samples and display products (free of 60 days), is similar to domestic VAT. It is a state tax, and each state has different regulations, so when selling or transferring across state lines, there will be an interstate tax of 4% (more than 40% of products imported), 7% (from the southeast to the northeast or the Midwest) or 12% (other interstate transactions)
A. The tax base of ICMS import is CIF, ii, IPI, PIS, COFIN plus customs clearance fees;
B. The tax base of ICMS circulation is the sales price plus sales expenses (freight, insurance interest, etc. borne by the buyer), and some IPI is also added
Take the 18% ICMS tax rate for large Brazilian enterprises as an example:
ICMS tax has been paid in the import customs clearance process, the input invoice is 500,000, the import needs to pay 500,000 * 18% = 90,000, the sales invoice is 600,000, the sales invoice can offset the 90,000, and the actual payment should be 600,000 * 18% -9 = 18,000
Example of tax calculation during import customs clearance:
Let's say the value of the product is $100,000, the shipping cost is $10,000, the insurance is $100, and the exchange rate of the US dollar to the real is 1:4
The tax rate is an example, it is all hypothetical, for reference only, and the specific situation shall prevail.

Insurance

The TAXA SISCOMES and Despeas Aduaneiras (AFRMM) in the table below can be found in the Import Registration Declaration (DI), assuming 214.5R$ and 1071.68R$, respectively

2.2 vehicle tax：IPVA

2.3 estate gift tax：ITD

3、municipality tax

3.1  Service tax ISS or ISSQN: A tax levied on the sale of goods in general, and enterprises or individual businesses providing labor services should pay labor tax, which is between 2% and 5% from the price of services

3.2 Urban Real Estate Tax IPTU: Urban real estate is levied on the appraised value and can be paid in one lump sum or in installments
       3.3 Real Estate Transfer Tax ITBI: Tax rates range from 2% to 6%.

4. Social expenditures
       4.1 Corporate Profits Tax CSLL: also called net profit social contribution fee, tax rate is 8%, financial institutions are 18%
       4.2 Social insurance contributions INSS (CINSS): A tax levied on the purpose of raising the social welfare insurance fund, with an individual employee paying 8% of his salary and the employer paying 20%
       4.3 Social integration tax PIS: paid monthly, at rates of 0.65% and 3% respectively, based on income after deduction of industrial products tax IPI and ICMS and returns
       4.4 Social Security Fee COFINS: 3%
       4.5 Union Fee CSP