Tax in Brazil: consumption taxes, income tax, company tax, capital gains

PIS/COFINS in Brazil

In transition: a dual VAT (CBS federal + IBS state/municipal) is replacing the legacy ICMS/ISS/PIS/COFINS stack between 2026 and 2033, so there is no single national rate to quote.

Standard rate

No single national rate (in transition)

Local name

PIS/COFINS — Consumption Taxes

Type

Hybrid

Reduced rates

None on record

Registration threshold

Varies by tax and state

Filing

Varies by tax and state

Authority

Receita Federal do Brasil (Federal Revenue Service)

Current rate since

1 January 2000

Company tax in Brazil

The headline corporate income tax rate is 15%. In effect since 1 January 1996.

IRPJ basic rate 15% on real/presumed/arbitrated profit, plus a 10% IRPJ additional on profit exceeding BRL 20,000 per month (BRL 240,000/yr), plus CSLL (social contribution on net profit) 9% for companies in general (15% financial institutions/insurers; 20% for some banks). Typical combined rate 34% (OECD 2026: 34%). Simples Nacional regime for micro/small enterprises replaces these with a unified turnover-based tax (rates not read). Brazil enacted a 15% Additional CSLL (Pillar Two QDMTT, 'AdCSLL') from 2025 - listed on Receita site, not read in detail. | Cross-check: OECD 2026: central statutory CIT 34%, combined (central+sub-central) 34%

Brazil company tax calculator →

Did you know? Brazil tax facts

• Brazil is running two entire consumption-tax systems at once — the old five taxes and the new two — and will keep doing so until 2033, because untangling three tiers of government from the same tax base takes a seven-year transition.

  Constitutional Amendment 132, promulgated on 20 December 2023 after some 30 years of discussion, folds the federal PIS, Cofins and IPI, the state ICMS and the municipal ISS into a dual VAT: the federal CBS plus the state-and-municipal IBS, with a Selective Tax alongside for goods considered harmful.

  Source: Wikipedia — Brazilian tax reform ↗

• The reason for all that upheaval: on the World Bank's Paying Taxes measure Brazil ranked 181st of 190 countries, with a typical company spending about 2,038 hours a year simply complying — roughly double the next most demanding country, Bolivia.

  Companies in Mexico and Chile spent an average of 291 and 286 hours on the same exercise. Brazil's overall tax burden was reckoned to reach as much as 68% of a company's total income.

  Source: International Tax Review — The challenges of tax compliance in Brazil ↗

• Brazil's income tax was created by Law 4,625 of 31 December 1922 — 'Fica instituído o imposto geral sobre a renda' — but collection only began in 1924, and the first filing deadline was pushed back to 14 March 1925.

  Receita Federal's history: the 1922 law directed the Executive to prepare regulations so that 'a arrecadação do imposto se torne effectiva em 1924'; the regulation came as Decree 16,581 of 4 September 1924 and the first deadline moved from 14 November 1924 to 14 March 1925 because the instructions arrived too late. The 1924 budget law set rates from 1% on incomes between 20:000$ and 30:000$ (réis) to 8% above 500:000$, with the lowest incomes exempt.

  Source: Receita Federal do Brasil — Memória: 1922 a 1924, a instituição do imposto de renda no Brasil · checked 10 October 2026 ↗

• Brazil's personal income tax (IRPF) has four rates — 7.5%, 15%, 22.5% and 27.5% — with the lowest monthly incomes exempt; the tax was created in 1922 under President Artur Bernardes and first charged in 1924.

  Portuguese Wikipedia: 'A criação do imposto atual ocorreu em 1922 durante a presidência de Artur Bernardes', charged only from 1924; the 2024 table lists 'Até R$ 2.259,20' as exempt (R$2,112.00 in 2023), then 7.5%, 15%, 22.5% and 27.5%.

  Source: Wikipédia (PT) — Imposto de Renda · checked 10 October 2026 ↗

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