Taxes and The Essential Solutions for You

It is a very recurrent taxation in the life of all people. The IOF is charged on credit, insurance and foreign exchange transactions. Its incidence is the same for companies and individuals.

Industrialized Products Tax

It is a tax to be paid by traders, importers and owners of industries. It is charged on national and imported goods, provided they have undergone some type of industrialization. Often, to encourage consumption, the federal government itself launches IPI exemption programs   for a certain period.

Corporate Income Tax

It focuses on the gross collection of companies, regardless of their size or chosen taxation regime. Currently, there are two alternatives: 6%, when charged on accumulated inflationary profit, and 15%, on real profit. Visit here for more information about state tax calculator.

Rural Territorial Property Tax

It is collected annually from all rural landowners, including legal entities. If not paid by the due date, there is a charge of 1% interest per month.

Contribution to the National Institute of National Security

Created in 1988 and intended for social retirement and other social security benefits. The higher the employee’s salary is, the higher the payroll discount, which can vary between 8% and 11%.

Contribution to the Severance Pay Fund

Another tax is levied on the receipts of employees who work with a formal contract. So, every month, 8% of each employee’s salary is deposited in a nominal fund.

The accumulated amount can be withdrawn by the employee in the event of dismissal, government determination or home ownership.

Contribution to Social Security Financing

All organizations must collect the calculations, which are intended to help the government finance social security programs, such as Social Security and public health, with rates ranging from 3% to 7.6%, according to the type of payment profits in which the company is included.

Contribution of Intervention in the Economic Domain

It is an added tribute to the use of oil, natural gas and its derivatives. The amounts are R $ 100 per cubic meter of natural gas and R $ 50 per cubic meter of diesel.

However, products destined for the foreign market or that will be used in the production of petrochemicals are exempt from payment.

Social Contribution on Net Income

It is charged on the companies’ net income. Its percentage varies between 9% and 20%, determined according to the amount of net income earned in the period.

These are contributions intended to pay bonuses and unemployment insurance to employees of public institutions and the private sector.

Types of state taxes

Tax on Circulation of Goods and Services (ICMS)

It is a tax that affects the most diverse services and goods marketed in the country. Each state of the federation is free to assign the rate to be charged.

Motor Vehicle Property Tax

Companies that own cars, motorbikes, buses or trucks must make their payment annually. The percentage charged also varies according to the state, also considering the value of each vehicle in its calculation. Then, half of the amount collected goes to the corresponding state and half to the municipality in which the property was registered.