What and how is the tax payment in Brazil

No brazil, specifically for businesses, taxes vary according to the tax rate of each: national Simple, Presumed Profit or Taxable Income.
The main taxes paid by companies are: ICMS, ISS, PIS, COFINS, Social contribution and income tax. Yet on how these taxes are levied, We can classify them as direct and indirect:

direct taxes

Direct taxes are those paid on consumption and assets of each citizen. Although they do not weigh much in their pockets, they are the best known employees:
1. IRPF: levied on taxable income declared by citizens. The fee is calculated proportionally according to the declared value, ranging from 7,5 a 27,5%.
2. IPVA (Vehicle Tax Property Motor): charged annually to all vehicle owners, the percentage is different in each state. The rate may vary between 1% e 4% the value of the vehicle.
3. Iptu (Urban Building and Land Tax): annual rate, payable by all owners, both in rural and in urban area. The amount, which can be paid in cash or in installments, It is calculated based on the actual property value (value estimate set by the Government).

Excise

Indirect taxes are the ones that weigh on the family budget. Built in the final values ​​of goods and services, It is almost impossible to get rid of charges:
1. ICMS (Tax on Goods and Services): It is levied on the movement of goods or other services. The tax rate is applied by each state, varying according to the essentiality of the level of service or merchandise. The average is applied 18%.
2. IPI (Taxes over industrialized products): The IPI has become better known to the general public due to the various campaigns of the federal government and private companies, to reduce the tax burden, mainly white goods (stoves, refrigerators, etc.) and car. . The amount of tax depends on the product. Through the IRS website you can refer to the fee schedule.
3. ISS (Tax over services): This tax is levied on the provision of services, irrespective of the market type. Levied by the municipality, the value generally corresponds to 5% service.
4. IOF (Financial transaction tax): The IOF is levied on all financial transactions, whether carried out by credit card companies or financial institutions. In the case of cards, charging occurs, one of the times, when consumers make payments of bills and bank cards to the credit function.
Although Brazil is considered one of the countries where taxes are paid, It is essential to have a product control system and services in which these taxes are classified, embedded in the price, considered in order to estimate the real cost of these products and services.
It is advisable that managers perform calculations, targeting subsidies for decision making by way of taxation, estimating revenues and costs, based on the annual budget or historical carrying values, duly adjusted in realistic expectations.
Tax planning indicate that the best form of taxation. Some activities are not permitted by the National Simple, some do. That is why it is not essential to take into account this plan even before the commencement of business on.

Odenir J FIELDS
Accounting expert

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