How doing business in Brazil is a basic summary of tax and corporate aspects international entrepeuners and executives need to understand on their strategic planning phase to enter in Brazil. We recomend as best practice request assistance to experts in order to carry out their business in compliance and adding value to your business.
The document discusses strategies used by the Rwanda Revenue Authority (RRA) to mobilize tax revenues in Rwanda. It describes introducing an online tax clearance certificate to help taxpayers access loans and conduct business more easily. It also discusses allowing small businesses with annual turnover under 200 million Rwandan francs to file and pay value added tax returns quarterly for cash flow purposes. Additionally, it covers opening bloc management offices and regional offices to reach small- and medium-sized enterprises with tax information and support their growth. The overall goal is to promote business activity and tax compliance.
The document summarizes investment basics and taxation rules in Venezuela. There are three legal mechanisms for buying and selling foreign currency in Venezuela, with different exchange rates and availability. Companies are subject to corporate income tax on worldwide profits at progressive rates up to 34%. Individuals are subject to personal income tax on worldwide income at progressive rates from 6-34%. Capital gains are generally included as ordinary income for both companies and individuals.
The Colombian tax system includes national, regional and municipal taxes. The main national taxes are the income tax, the value added tax (VAT), the consumption tax and the debit tax (GMF). Income tax is a levy on revenues realized within the taxable year that have the potential to increase taxpayer’s net equity and are not expressly excluded. The general income tax rate for national companies and permanent establishments is 33% for 2018 and following years. An additional 4% surcharge applies in 2018 for taxpayers with taxable income over approximately USD 275,862. Free trade zone users, excluding commercial users, have an income tax rate of 20%.
The document summarizes tax issues in Vietnam discussed by the We Taxation and Transfer Pricing Sector Committee. It addresses five key areas: 1) VAT-related issues regarding VAT rates for export services and non-VAT clawbacks for failed oil and gas projects. 2) Restricted deductibility of advertising and promotional expenses. 3) Issues with tax treaty claims and treatment of capital transfers in real estate companies. 4) Foreign contractor withholding tax treatment related to warranties and distribution rights. 5) Simplifying documentation for foreign tax credits. Recommendations are provided for each area to improve tax regulations and create a more competitive investment environment.
The document provides an overview of Vietnam's tax system and the key taxes applicable to foreign business activities in Vietnam. It summarizes the main taxes including Enterprise Income Tax, Value Added Tax, Import/Export Duties, Withholding Tax, and Personal Income Tax. For each tax, it outlines the taxpayers, tax rates, payment procedures, exemptions, and deductions. The document also discusses Vietnam's tax authority system and penalties for tax violations.
Aija conference tlc - taxation in brazil - tax incentives for projects in i...rschlaw
The document summarizes Brazil's tax system and incentives for infrastructure projects. It outlines the basic tax system including various taxation options. It then describes several special tax incentive regimes for infrastructure projects related to areas like transportation, energy, and sports stadiums for upcoming events. These regimes provide suspensions or exemptions from taxes like PIS, COFINS, IPI, and ICMS for goods and services used in qualified infrastructure projects. Requirements and durations of benefits are specified for each incentive regime.
Peru 2016 - Corporate and Tax Highlights by Gianmauro NigrettiGianmauro Nigretti
This document summarizes key information about doing business in Peru, including:
- Common forms of business organization are corporations and closed corporations. Corporations require a minimum of 25% of capital stock be paid and forbid contribution of services.
- Corporate income tax is currently 28% but will decrease to 26% by 2019. Resident companies pay tax on worldwide income.
- Individuals are taxed progressively up to 30% on income exceeding 45 times the annual tax unit. Domiciled individuals pay tax on global income while non-domiciled pay only on Peruvian source income.
- Peru has signed numerous double taxation treaties and is negotiating more. VAT of 18% applies to most goods
A Critical Evaluation of the OECD's BEPS ProjectRamon Tomazela
This document provides a critical analysis of the OECD's BEPS (base erosion and profit shifting) project from the perspective of an international tax law expert. It summarizes key actions and proposals from the BEPS project, and identifies challenges. Action 1 addresses taxing the digital economy, but determining which states can tax and allocating taxable profits will be difficult. Action 2 aims to prevent tax benefits from hybrid financial instruments and entities, but linking tax treatments across countries relies on debatable principles of international tax law. The BEPS project may be insufficient to fully address issues caused by economic changes and requires radical tax law reforms.
The document discusses strategies used by the Rwanda Revenue Authority (RRA) to mobilize tax revenues in Rwanda. It describes introducing an online tax clearance certificate to help taxpayers access loans and conduct business more easily. It also discusses allowing small businesses with annual turnover under 200 million Rwandan francs to file and pay value added tax returns quarterly for cash flow purposes. Additionally, it covers opening bloc management offices and regional offices to reach small- and medium-sized enterprises with tax information and support their growth. The overall goal is to promote business activity and tax compliance.
The document summarizes investment basics and taxation rules in Venezuela. There are three legal mechanisms for buying and selling foreign currency in Venezuela, with different exchange rates and availability. Companies are subject to corporate income tax on worldwide profits at progressive rates up to 34%. Individuals are subject to personal income tax on worldwide income at progressive rates from 6-34%. Capital gains are generally included as ordinary income for both companies and individuals.
The Colombian tax system includes national, regional and municipal taxes. The main national taxes are the income tax, the value added tax (VAT), the consumption tax and the debit tax (GMF). Income tax is a levy on revenues realized within the taxable year that have the potential to increase taxpayer’s net equity and are not expressly excluded. The general income tax rate for national companies and permanent establishments is 33% for 2018 and following years. An additional 4% surcharge applies in 2018 for taxpayers with taxable income over approximately USD 275,862. Free trade zone users, excluding commercial users, have an income tax rate of 20%.
The document summarizes tax issues in Vietnam discussed by the We Taxation and Transfer Pricing Sector Committee. It addresses five key areas: 1) VAT-related issues regarding VAT rates for export services and non-VAT clawbacks for failed oil and gas projects. 2) Restricted deductibility of advertising and promotional expenses. 3) Issues with tax treaty claims and treatment of capital transfers in real estate companies. 4) Foreign contractor withholding tax treatment related to warranties and distribution rights. 5) Simplifying documentation for foreign tax credits. Recommendations are provided for each area to improve tax regulations and create a more competitive investment environment.
The document provides an overview of Vietnam's tax system and the key taxes applicable to foreign business activities in Vietnam. It summarizes the main taxes including Enterprise Income Tax, Value Added Tax, Import/Export Duties, Withholding Tax, and Personal Income Tax. For each tax, it outlines the taxpayers, tax rates, payment procedures, exemptions, and deductions. The document also discusses Vietnam's tax authority system and penalties for tax violations.
Aija conference tlc - taxation in brazil - tax incentives for projects in i...rschlaw
The document summarizes Brazil's tax system and incentives for infrastructure projects. It outlines the basic tax system including various taxation options. It then describes several special tax incentive regimes for infrastructure projects related to areas like transportation, energy, and sports stadiums for upcoming events. These regimes provide suspensions or exemptions from taxes like PIS, COFINS, IPI, and ICMS for goods and services used in qualified infrastructure projects. Requirements and durations of benefits are specified for each incentive regime.
Peru 2016 - Corporate and Tax Highlights by Gianmauro NigrettiGianmauro Nigretti
This document summarizes key information about doing business in Peru, including:
- Common forms of business organization are corporations and closed corporations. Corporations require a minimum of 25% of capital stock be paid and forbid contribution of services.
- Corporate income tax is currently 28% but will decrease to 26% by 2019. Resident companies pay tax on worldwide income.
- Individuals are taxed progressively up to 30% on income exceeding 45 times the annual tax unit. Domiciled individuals pay tax on global income while non-domiciled pay only on Peruvian source income.
- Peru has signed numerous double taxation treaties and is negotiating more. VAT of 18% applies to most goods
A Critical Evaluation of the OECD's BEPS ProjectRamon Tomazela
This document provides a critical analysis of the OECD's BEPS (base erosion and profit shifting) project from the perspective of an international tax law expert. It summarizes key actions and proposals from the BEPS project, and identifies challenges. Action 1 addresses taxing the digital economy, but determining which states can tax and allocating taxable profits will be difficult. Action 2 aims to prevent tax benefits from hybrid financial instruments and entities, but linking tax treatments across countries relies on debatable principles of international tax law. The BEPS project may be insufficient to fully address issues caused by economic changes and requires radical tax law reforms.
This document contains the presentation materials for a talk on taxation in Bangladesh. It discusses the history and implementation of Value Added Tax (VAT) in Bangladesh. The presentation is made up of several speakers who cover topics like the definition of VAT, the VAT mechanism, VAT rates and exemptions in Bangladesh, trends in VAT collection, and the authority that administers VAT. It provides an overview of how VAT works and its role in the Bangladeshi tax system.
Welcome to our guide for Taxation in Vietnam. In this guide, we hope to provide you with an overview of the key aspects of Taxation in Vietnam and answer many of the questions that foreign businesses and entrepreneurs have when making their first venture into the Vietnamese market.
Most business activities and investments in Vietnam will be affected by the following taxes:
Corporate income tax;
Various withholding taxes;
Capital assignment profits tax;
Value added tax;
Import duties;
Personal income tax of Vietnamese and expatriate employees;
Social insurance, unemployment insurance and health insurance contributions.
There are various other taxes that may affect certain specific activities, including:
Special sales tax;
Natural resources tax;
Property taxes;
Export duties;
Environment protection tax.
All these taxes are imposed at the national level. There are no local, state or provincial taxes.
AN OVERVIEW OF STATUTES ON TAX ADMINISTRATION IN NIGAdeyemi Aladesawe
This document provides an overview of the key statutes governing tax administration in Nigeria. It discusses the various taxes administered by the Federal Inland Revenue Service (FIRS), state boards of internal revenue, and local government revenue committees. Some of the major taxes discussed include company income tax, personal income tax, value added tax, capital gains tax, petroleum profit tax, stamp duties, and education tax. The document also outlines the statutes and acts governing these different taxes as well as the roles of different government bodies in tax administration. It concludes that Nigeria's tax laws are outdated and in need of reform to align with the current economic realities.
- Value Added Tax (VAT) is an indirect tax levied on the increase in value of goods and services at each stage of production and distribution. It was first introduced in France in 1954 and has since been adopted by over 100 countries.
- Bangladesh introduced VAT in 1991 to replace sales tax and business turnover tax. The standard VAT rate is 15% and turnover tax rate is 4%. Excise duties are also included under the VAT system.
- The National Board of Revenue is the central tax collection authority in Bangladesh responsible for administering and collecting VAT.
Presentation by Sebsbie Fekade, Ansakech Lake and Ronald Waiswa at the second annual meeting of the Ethiopian Tax Research Network, which took place in Addis Ababa on 8th October 2018.
This document summarizes key investment and tax information for Romania. It outlines that the Romanian currency is the New Leu, foreign exchange is generally permitted, and accounting standards follow the EU directives or IFRS. The main business entities are joint stock companies, general partnerships, limited partnerships, limited liability companies and branches or representative offices of foreign companies. Corporate taxes are levied on worldwide income for residents and Romania-source income for nonresidents at a rate of 16%. Notable exemptions include dividends and capital gains from qualifying subsidiaries. Withholding taxes apply to dividends, interest and royalties paid to nonresidents, though may be reduced under tax treaties. Anti-avoidance rules address transfer pricing and
The document provides an overview of BEPS (Base Erosion and Profit Shifting) which refers to tax avoidance strategies used by multinational enterprises to artificially shift profits to low or no-tax jurisdictions. It summarizes the key actions and recommendations from the OECD's BEPS project to address this issue, including establishing new minimum standards around preventing treaty abuse, improving transparency through country-by-country reporting, and strengthening transfer pricing rules and controlled foreign company rules. It also discusses some of the changes made in India's tax regime to tackle BEPS concerns related to the digital economy, hybrid mismatches, interest deductions, and harmful tax practices.
Tanzania Revenue Authority PresentationApollo Temu
The document discusses tax administration reforms in Tanzania and how the Tanzanian diaspora can contribute to development. It outlines Tanzania Revenue Authority's (TRA) reforms to modernize operations and increase voluntary tax compliance. TRA collects taxes through improved ICT systems. The document also details how the diaspora can send duty-exempt goods to qualifying organizations in Tanzania to support poverty alleviation and development projects.
Tax culture of pakistan and its effect on economySalman Saleem
The document discusses taxation in Pakistan. It provides definitions of direct taxes, which are paid directly to the government, and indirect taxes, which are collected by intermediaries. It notes that the government collects 37% of total tax revenue from direct taxes and 63% from indirect taxes. It also discusses tax evasion, which is illegal, versus tax avoidance, which uses legal loopholes. Statistics are given showing low registration and filing rates for corporate and sales taxes. Factors that encourage tax evasion in Pakistan include lack of strict enforcement, complicated systems, lack of benefits for taxpayers, and corruption. Recommendations to reduce evasion include improved audits, amnesty programs, lower rates, simplicity, anti-evasion policies, and
This document provides an assessment of value added tax (VAT) administration practices in Yirgalem town, Ethiopia from 2004-2006. It was submitted by Abraham Sewnet to fulfill requirements for a B.A. degree in accounting and finance from Hawassa University. The study focuses on identifying challenges in VAT administration and compliance from the perspectives of taxpayers and tax authorities. Literature on VAT is reviewed, including definitions, types of VAT, terminology, and theoretical frameworks. The study aims to assess factors creating administrative problems, compliance with rules and regulations, major issues in VAT collection, and impacts on prices and customer behavior. It is intended to assist policymakers and taxpayers in understanding VAT and improving the system.
This document provides an overview of chapter 1 of a study on income tax in Bangladesh. It outlines the background, objectives, methodology, scope and limitations of the study. The background section describes the sources of income tax revenue in Bangladesh and its importance to the national economy. The objectives include understanding the history and implementation of income tax, as well as its contribution to development. The methodology discusses primary research through interviews and secondary research using official reports and publications. The scope is limited to the tax collection system, while limitations include a short time frame and lack of detailed public data.
A causality analysis between tax audit and tax compliance in nigeriaAlexander Decker
This document examines the relationship between tax audit and tax compliance in Nigeria. It analyzes data collected from questionnaires administered to 204 respondents. The empirical analysis found a significant relationship between random tax audits, cut-off tax audits, and conditional tax audits on tax compliance in Nigeria. The paper concludes that tax audits are an effective compliance strategy to improve tax compliance, as many Nigerians are known to evade or avoid taxes. It recommends that the government increase transparency around tax revenue collection and expenditure, faithfully implement tax laws regardless of status, and improve the standard of tax audits.
The document summarizes key tax measures and issues in Italy's tax system. Some of the major changes include an increase in the standard VAT rate from 21% to 23% by October 2012, a new deduction for corporate equity allowing companies to deduct a percentage of increased equity, and the abolition of time limits for carrying forward tax losses. A new 20% flat tax rate was also introduced on income from financial investments.
This document provides an overview of taxation in Uganda, outlining key types of taxes. It discusses direct and indirect taxes, then describes various taxes levied in Uganda, including business income tax, personal income tax (PAYE), value added tax, stamp duty, rental income tax, withholding tax, and tax filing requirements. The main taxes discussed are business income tax, personal income tax, value added tax, and withholding tax. It provides details on tax rates, registration requirements, payment procedures, and filing deadlines for each of these major taxes in Uganda.
The document discusses tax incentives for foreign investors in Nigeria. It provides an overview of Nigeria's tax system and the types of taxes imposed on individuals, corporate entities, and transactions. It then outlines various tax incentives available under key tax laws to attract foreign investment, including pioneer status, tax exemptions, reduced tax rates, and allowances. The document notes Nigeria's commitment to reforming its tax system to create a more favorable environment for foreign investors while ensuring benefits to the Nigerian economy.
The document discusses the OECD's proposals under Pillars 1 and 2 of the BEPS 2.0 project. Pillar 1 aims to establish a new nexus rule and profit allocation framework to address tax challenges from the digitalization of the economy. It proposes allocating additional taxing rights to market jurisdictions based on factors like user participation and marketing intangibles. Pillar 2 introduces the Global anti-Base Erosion proposal consisting of an income inclusion rule and undertaxed payments rule to ensure a minimum level of taxation. It seeks to limit profit shifting, but countries have concerns around its economic and political impacts as well as challenges reaching consensus by the 2020 deadline.
The document discusses several issues related to tax reforms in Pakistan. It notes that the failure of previous tax reforms and flood relief expenditures have made Pakistan's fiscal imbalance unsustainable. It recommends eliminating tax exemptions for the rich to increase revenue, spending more on education and health, and conditioning donor funding on economic reforms to promote sustainable growth.
The document provides an overview of India's income tax system. It discusses that income tax is governed by the central government and levied under the Income Tax Act of 1961. The government taxes various types of individual and business income. Disputes can be appealed through a three-tier system of the commissioner, appellate tribunal, and courts. The government has also implemented measures like the GAAR and equalization levy to address tax avoidance, while transfer pricing remains a controversial area of focus.
The summary provides an overview of Colombia's tax system:
1. The main national taxes are the income tax of 25%, income tax for equality (CREE) of 9%, value added tax (VAT) of 16%, and debit tax which will be eliminated by 2022.
2. Municipal taxes include the industry and commerce tax (ICA) ranging from 0.2-1.4% and real estate tax from 0.3-3.3%.
3. The taxable base for income tax can be determined using the ordinary system, presumptive income system, or equity comparison system. Small companies benefit from reduced income tax rates during their first years of operation.
The document provides an overview of Pakistan's tax structure, including direct and indirect taxes. It discusses income tax, sales tax, corporate tax rates, and the proposed goods and services tax (RGST) which would replace existing sales tax and excise regimes. The RGST is essentially a value-added tax with a 15% rate that would be applied incrementally at each stage of production and distribution. It is aimed at simplifying the tax system and reducing evasion, but may increase costs to consumers.
This document contains the presentation materials for a talk on taxation in Bangladesh. It discusses the history and implementation of Value Added Tax (VAT) in Bangladesh. The presentation is made up of several speakers who cover topics like the definition of VAT, the VAT mechanism, VAT rates and exemptions in Bangladesh, trends in VAT collection, and the authority that administers VAT. It provides an overview of how VAT works and its role in the Bangladeshi tax system.
Welcome to our guide for Taxation in Vietnam. In this guide, we hope to provide you with an overview of the key aspects of Taxation in Vietnam and answer many of the questions that foreign businesses and entrepreneurs have when making their first venture into the Vietnamese market.
Most business activities and investments in Vietnam will be affected by the following taxes:
Corporate income tax;
Various withholding taxes;
Capital assignment profits tax;
Value added tax;
Import duties;
Personal income tax of Vietnamese and expatriate employees;
Social insurance, unemployment insurance and health insurance contributions.
There are various other taxes that may affect certain specific activities, including:
Special sales tax;
Natural resources tax;
Property taxes;
Export duties;
Environment protection tax.
All these taxes are imposed at the national level. There are no local, state or provincial taxes.
AN OVERVIEW OF STATUTES ON TAX ADMINISTRATION IN NIGAdeyemi Aladesawe
This document provides an overview of the key statutes governing tax administration in Nigeria. It discusses the various taxes administered by the Federal Inland Revenue Service (FIRS), state boards of internal revenue, and local government revenue committees. Some of the major taxes discussed include company income tax, personal income tax, value added tax, capital gains tax, petroleum profit tax, stamp duties, and education tax. The document also outlines the statutes and acts governing these different taxes as well as the roles of different government bodies in tax administration. It concludes that Nigeria's tax laws are outdated and in need of reform to align with the current economic realities.
- Value Added Tax (VAT) is an indirect tax levied on the increase in value of goods and services at each stage of production and distribution. It was first introduced in France in 1954 and has since been adopted by over 100 countries.
- Bangladesh introduced VAT in 1991 to replace sales tax and business turnover tax. The standard VAT rate is 15% and turnover tax rate is 4%. Excise duties are also included under the VAT system.
- The National Board of Revenue is the central tax collection authority in Bangladesh responsible for administering and collecting VAT.
Presentation by Sebsbie Fekade, Ansakech Lake and Ronald Waiswa at the second annual meeting of the Ethiopian Tax Research Network, which took place in Addis Ababa on 8th October 2018.
This document summarizes key investment and tax information for Romania. It outlines that the Romanian currency is the New Leu, foreign exchange is generally permitted, and accounting standards follow the EU directives or IFRS. The main business entities are joint stock companies, general partnerships, limited partnerships, limited liability companies and branches or representative offices of foreign companies. Corporate taxes are levied on worldwide income for residents and Romania-source income for nonresidents at a rate of 16%. Notable exemptions include dividends and capital gains from qualifying subsidiaries. Withholding taxes apply to dividends, interest and royalties paid to nonresidents, though may be reduced under tax treaties. Anti-avoidance rules address transfer pricing and
The document provides an overview of BEPS (Base Erosion and Profit Shifting) which refers to tax avoidance strategies used by multinational enterprises to artificially shift profits to low or no-tax jurisdictions. It summarizes the key actions and recommendations from the OECD's BEPS project to address this issue, including establishing new minimum standards around preventing treaty abuse, improving transparency through country-by-country reporting, and strengthening transfer pricing rules and controlled foreign company rules. It also discusses some of the changes made in India's tax regime to tackle BEPS concerns related to the digital economy, hybrid mismatches, interest deductions, and harmful tax practices.
Tanzania Revenue Authority PresentationApollo Temu
The document discusses tax administration reforms in Tanzania and how the Tanzanian diaspora can contribute to development. It outlines Tanzania Revenue Authority's (TRA) reforms to modernize operations and increase voluntary tax compliance. TRA collects taxes through improved ICT systems. The document also details how the diaspora can send duty-exempt goods to qualifying organizations in Tanzania to support poverty alleviation and development projects.
Tax culture of pakistan and its effect on economySalman Saleem
The document discusses taxation in Pakistan. It provides definitions of direct taxes, which are paid directly to the government, and indirect taxes, which are collected by intermediaries. It notes that the government collects 37% of total tax revenue from direct taxes and 63% from indirect taxes. It also discusses tax evasion, which is illegal, versus tax avoidance, which uses legal loopholes. Statistics are given showing low registration and filing rates for corporate and sales taxes. Factors that encourage tax evasion in Pakistan include lack of strict enforcement, complicated systems, lack of benefits for taxpayers, and corruption. Recommendations to reduce evasion include improved audits, amnesty programs, lower rates, simplicity, anti-evasion policies, and
This document provides an assessment of value added tax (VAT) administration practices in Yirgalem town, Ethiopia from 2004-2006. It was submitted by Abraham Sewnet to fulfill requirements for a B.A. degree in accounting and finance from Hawassa University. The study focuses on identifying challenges in VAT administration and compliance from the perspectives of taxpayers and tax authorities. Literature on VAT is reviewed, including definitions, types of VAT, terminology, and theoretical frameworks. The study aims to assess factors creating administrative problems, compliance with rules and regulations, major issues in VAT collection, and impacts on prices and customer behavior. It is intended to assist policymakers and taxpayers in understanding VAT and improving the system.
This document provides an overview of chapter 1 of a study on income tax in Bangladesh. It outlines the background, objectives, methodology, scope and limitations of the study. The background section describes the sources of income tax revenue in Bangladesh and its importance to the national economy. The objectives include understanding the history and implementation of income tax, as well as its contribution to development. The methodology discusses primary research through interviews and secondary research using official reports and publications. The scope is limited to the tax collection system, while limitations include a short time frame and lack of detailed public data.
A causality analysis between tax audit and tax compliance in nigeriaAlexander Decker
This document examines the relationship between tax audit and tax compliance in Nigeria. It analyzes data collected from questionnaires administered to 204 respondents. The empirical analysis found a significant relationship between random tax audits, cut-off tax audits, and conditional tax audits on tax compliance in Nigeria. The paper concludes that tax audits are an effective compliance strategy to improve tax compliance, as many Nigerians are known to evade or avoid taxes. It recommends that the government increase transparency around tax revenue collection and expenditure, faithfully implement tax laws regardless of status, and improve the standard of tax audits.
The document summarizes key tax measures and issues in Italy's tax system. Some of the major changes include an increase in the standard VAT rate from 21% to 23% by October 2012, a new deduction for corporate equity allowing companies to deduct a percentage of increased equity, and the abolition of time limits for carrying forward tax losses. A new 20% flat tax rate was also introduced on income from financial investments.
This document provides an overview of taxation in Uganda, outlining key types of taxes. It discusses direct and indirect taxes, then describes various taxes levied in Uganda, including business income tax, personal income tax (PAYE), value added tax, stamp duty, rental income tax, withholding tax, and tax filing requirements. The main taxes discussed are business income tax, personal income tax, value added tax, and withholding tax. It provides details on tax rates, registration requirements, payment procedures, and filing deadlines for each of these major taxes in Uganda.
The document discusses tax incentives for foreign investors in Nigeria. It provides an overview of Nigeria's tax system and the types of taxes imposed on individuals, corporate entities, and transactions. It then outlines various tax incentives available under key tax laws to attract foreign investment, including pioneer status, tax exemptions, reduced tax rates, and allowances. The document notes Nigeria's commitment to reforming its tax system to create a more favorable environment for foreign investors while ensuring benefits to the Nigerian economy.
The document discusses the OECD's proposals under Pillars 1 and 2 of the BEPS 2.0 project. Pillar 1 aims to establish a new nexus rule and profit allocation framework to address tax challenges from the digitalization of the economy. It proposes allocating additional taxing rights to market jurisdictions based on factors like user participation and marketing intangibles. Pillar 2 introduces the Global anti-Base Erosion proposal consisting of an income inclusion rule and undertaxed payments rule to ensure a minimum level of taxation. It seeks to limit profit shifting, but countries have concerns around its economic and political impacts as well as challenges reaching consensus by the 2020 deadline.
The document discusses several issues related to tax reforms in Pakistan. It notes that the failure of previous tax reforms and flood relief expenditures have made Pakistan's fiscal imbalance unsustainable. It recommends eliminating tax exemptions for the rich to increase revenue, spending more on education and health, and conditioning donor funding on economic reforms to promote sustainable growth.
The document provides an overview of India's income tax system. It discusses that income tax is governed by the central government and levied under the Income Tax Act of 1961. The government taxes various types of individual and business income. Disputes can be appealed through a three-tier system of the commissioner, appellate tribunal, and courts. The government has also implemented measures like the GAAR and equalization levy to address tax avoidance, while transfer pricing remains a controversial area of focus.
The summary provides an overview of Colombia's tax system:
1. The main national taxes are the income tax of 25%, income tax for equality (CREE) of 9%, value added tax (VAT) of 16%, and debit tax which will be eliminated by 2022.
2. Municipal taxes include the industry and commerce tax (ICA) ranging from 0.2-1.4% and real estate tax from 0.3-3.3%.
3. The taxable base for income tax can be determined using the ordinary system, presumptive income system, or equity comparison system. Small companies benefit from reduced income tax rates during their first years of operation.
The document provides an overview of Pakistan's tax structure, including direct and indirect taxes. It discusses income tax, sales tax, corporate tax rates, and the proposed goods and services tax (RGST) which would replace existing sales tax and excise regimes. The RGST is essentially a value-added tax with a 15% rate that would be applied incrementally at each stage of production and distribution. It is aimed at simplifying the tax system and reducing evasion, but may increase costs to consumers.
The document summarizes key aspects of Mexico's 2014 tax reform legislation:
- It aims to increase tax revenues by 5% of GDP, finance social programs, and reduce dependence on oil.
- It passed the Senate in October 2013 and makes major changes to the federal tax code, income tax law, VAT law, special production tax law, and other laws.
- Key changes include eliminating certain taxes, increasing income tax rates, limiting deductions, and expanding VAT to new items and services.
This document provides an overview of taxation in India. It discusses various direct and indirect taxes collected by the central and state governments. Direct taxes include personal income tax, corporate income tax, and capital gains tax. Indirect taxes previously included excise duty, service tax, customs duty, and central sales tax. Recent reforms like GST have subsumed many indirect taxes. The document also explains concepts like tax deductions, tax collected at source, minimum alternate tax, and taxes on gifts, inheritance, wealth, securities transactions, and more.
The summary provides an overview of the key corporate taxes in Colombia that should be considered for business models, including income tax, VAT, excise taxes, property taxes, and more. It explains how various taxes work at the national, departmental, and municipal levels, such as income tax rates and categories, VAT rates, excise taxes on goods like fuel and carbon, and property taxes. The document also covers special tax regimes for holding companies and foreign-controlled companies.
This document provides a summary of the Colombian tax regime for foreign investors. It outlines some key national taxes such as corporate income tax (CIT), value added tax (VAT), wealth tax, and financial transaction tax (GMF). It also describes important local taxes like industry and commerce tax and property tax. The summary defines relevant tax terms and provides tax rates for CIT, capital gains, VAT, GMF, and WHT on foreign payments. It notes Colombia has double tax treaties with countries like Spain, Canada, and South Korea to avoid international double taxation.
This document provides a summary of Colombia's tax regime for foreign investors looking to do business in Colombia. It outlines some of the key national taxes such as corporate income tax, dividends tax, capital gains tax, wealth tax, and VAT. It also discusses local taxes like industry and commerce tax and property tax. The tax rates and requirements vary depending on the type of business and location within Colombia. The document is intended to provide basic information on Colombia's tax system and recommends seeking specialized legal counsel for specific tax matters.
The newsletter summarizes recent tax changes in France that will impact businesses. It outlines reductions to the corporate tax rate over four years to 28% and changes to dividend tax rates. It also discusses the introduction of income tax collected at source from 2018, modifications to vehicle tax depreciation deductions favoring electric vehicles, and an extension of favorable tax treatment for expatriate employees relocating to France post-Brexit.
The document discusses various concepts related to taxation in India. It defines key terms like previous year, assessment year, co-operative society, circular, notification, amendment, and official gazette. It also provides data on direct and indirect tax collections from 2009-2010 to 2015-2016. Finally, it explains the nature of different taxes like income tax, wealth tax, service tax, excise duty, customs duty and sales tax (VAT) and who bears the burden of direct and indirect taxes.
The summary provides an overview of the main taxes in Colombia that should be considered for business models, including national taxes like income tax, VAT, national excise tax, and regional taxes. Income tax rates range from 20% to 31%. VAT is generally charged at 19% but some goods and services are exempt. Various other taxes apply to activities like financial transactions, gasoline, vehicles, cigarettes, and alcohol. The document provides brief descriptions of how these different taxes work.
Tax justice from 100 years old income tax law.pdfM S Siddiqui
Roughly 94 per cent of income-tax revenue comes from tax deducted at source. The Tax deduct as source (TDS) has been imposed at border during release of imported goods and services, supply of goods and services to government and corporates entities. This deduction is on gross sales value but not on net profit. The advances taxes are non-refundable and considered as tax on income. In many cases the tax burden are more than 100 percent of the net income of the business enterprises.
This document proposes tax simplification reforms in Mexico, including:
1. Establishing a Simplified Trust Regime for individuals and corporations with annual revenues under MXN$35 million to simplify tax compliance.
2. Introducing a progressive tax rate of 1-2.5% for individuals based on taxable income.
3. Allowing corporations to deduct investments over shorter periods and determine taxes based on cash flow rather than coefficients.
The goals are to boost the economy by reducing administrative burdens, incentivize reinvestment, and formalize the majority of taxpayers who are currently informal. International information sharing will also be strengthened.
The memorandum proposes several tax reforms and government financing measures for the 2012/2013 national budget. It recommends a flat individual income tax rate of 20-25% along with eliminating double taxation of income. It also suggests reducing business taxes for small and medium Kenyan enterprises and those in manufacturing. Further, it proposes replacing VAT with a general sales tax, zero-rating duties on essential foods, borrowing through Islamic bonds for infrastructure and Eurobonds for other expenditures. Finally, it recommends pegging the Kenyan shilling to a basket of currencies and hedging prices for major exports.
This document provides an overview of personal income taxation in Malaysia. It discusses key concepts like chargeable income, taxable income, personal reliefs and deductions, rebates, tax rates, and tax payments. The objectives of tax planning are to maximize the amount kept by the individual and minimize taxes paid. Taxpayers are responsible for accurately reporting their income, maintaining records, and paying taxes owed by the deadline each year. Understanding taxation is important for effective personal financial planning and minimizing the taxes paid.
This document is a legal guide for doing business in Colombia that was last updated in March 2019. It provides an overview of Colombia's main legal aspects for foreign investors, including chapters on corporate regulations, foreign trade, labor laws, taxation, intellectual property, real estate, and accounting standards. The guide notes that Colombia has experienced strong economic growth and stability in recent decades, making it an attractive investment destination in Latin America.
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Fta brazilian taxadvices_for_international_investors Dec 2017
1. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
TAX GUIDE
FOR DOING BUSINESS IN BRAZIL
2. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
1. CORPORATE TAX REGIMES -
DETERMINATION OF TAXABLE INCOME
Income Tax Code is relatively aligned with main IFRS
procedures for tax and account purpose with certain
exceptions state by law 12,973 also Income Tax rules on
separate laws that should be addback to the basis in order
to determine corporate income tax.
Most useful methods to calculate corporate income tax:
(i) the presumed profit method (Lucro Presumido)
Presumed Profit Method called "Lucro Presumido" is a
simpler IRPJ calculation method that allows the taxpayer to
pay income tax and CSL based only its quartely gross
revenues. That means that costs and expenses are
irrelevant to determine IRPJ and CSL liability at the end of
quarter. Due to its simplicity Lucro Presumido is more
suitable for small and middle-sized businesses not to
mention the method's limitations and restrictions of use by
large companies. Most of International Companies with
prior year revenues of up to R$ 78 million can choose, under
certain circumstances, to pay income tax and social
contributions by the Presumed Profit Method, which is
calculated through a percentage of the quarterly gross
revenue on the cash basis. After that, dividends should be
remitted to the partners without additional taxation, general
rules.
Under Lucro Presumido IRPJ is calculated quarterly and, for
most activities the presumed profit margin is 8% of monthly
gross income corresponding to sales operational activities
and 32% to services revenues and depending on the
specific industry other rates apply. Based on the presumed
net income resulting from the application of the profit
margins over gross income, 15% IRPJ, rate applies; net
income in excess of BRL 60,000 per quarter is subject to an
IRPJ surtax of 10%, similar to that "estimated" calculation for
Lucro Real.
(ii) the actual profit method (Lucro Real)
Actual Profit Method called "Lucro Real" is the method
where the taxpayer pays Corporate Income Tax called:
Imposto de Renda da Pessoa Jurídica – “IRPJ” based on its
actual taxable income, after computing all income, gains
and taxes deductible costs and expenses, including net
operating losses of prior years. The taxpayer is required to
maintain current and accurate accounting and tax books
3. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
and records, and also corresponding supporting
documentation. Failure to maintain accurate accounting
and supporting documentation may lead to disallowance of
an expense requiring it to be added back to taxable income.
Taxable income must be recognised monthly following the
accrual basis criteria, following IFRS account procedures
and them determine basis to be subject to IRPJ. The tax
return call: Eletronic Fiscal Account - “ECF”, must be filed
annually. Taxpayer should declare on ECF their
transactions subject to CbC Report state by OCDE on BEPs
action plans, also transfer pricing calculation due for the
period according to methods previous on Brazilian TP Laws.
Corporate taxable income is taxed under a unitary system
whereby a single tax rate is applied. This rate is 25%, being
15% plus 10% on profits pre-tax over R$ 240,000 annually.
Corporate income tax is generally computed on a calendar
year basis. However, payments are made monthly on
estimated advance taxes. Social Contribution on Net Profit
called "CSLL" is another federal tax and is calculated on
profits pre-tax. The rate is 9% computed on an annual or
quarterly basis. Calculations and payments are made
monthly as estimated advance taxes. Both taxes on profits
add up to 34% (25% plus 9%).
2. INCENTIVES - GENERAL OVERVIEW
Brazil offers incentives through the reduction of domestic
taxes or exemption from withholding tax in the forwarding of
royalties or commissions on international financing. In
addition to incentives for exports, there are incentives for
the implementation of industrial units in specific regional
areas.
3. FOREIGN TAX RELIEF
Profits and gains from foreign sources are taxable in Brazil.
Tax credits are available to relieve double taxation subject
to a maximum of the Brazilian tax payable on the income.
Brazil main concepts in terms of taxation is considered
source income taxation. Thus, except for dividends that is
exempt for taxation, most of remittance from Brazilian
taxpayers to other jurisdiction is subject to withholding
income tax. Some reliefs exists depending on the case
according to Tax Treats to Avoid Duble Taxation.
4. CORPORATE GROUPS
For tax purposes, consolidation of affiliated companies is
not allowed. Losses can only be offset against profits of the
same company. Some changes on this matter was process
by law 12.973/2014. Such provision state possibility now
since 2015 to offset such losses recognized outside Brazil
with profits from Brazilian companies.
5. EXCHANGE CONTROLS
The Central Bank allows the official exchange rate to float
freely within periodically established bands but
participation is restricted to authorised dealers. The bank
intervenes when there are signs of speculative operations.
There is an official tourist rate that ranges normally close to
the commercial rate.
4. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
6. PROGRAM FOR SOCIAL INTEGRATION
CONTRIBUTION (PIS)
PIS is a federal social contribution levied on taxpayers'
monthly gross income. PIS has been subject to several
changes, many of them creating separate PIS regimes
depending on the taxpayer's business or income tax
calculation method. There are two basic PIS regimes
dependent on the corporate income tax method elected by
the taxpayer (Lucro Presumido or Lucro Real): the
cumulative regime and the non-cumulative regime.
These contributions are payable each month as a fund to
employees. This is calculated based on 1.65% of monthly
gross revenue. The PIS rate is generally 1.65% of the
monthly sale, in a non-cumulative way. It means, deductions
are allowed in respect of services and material costs applied
in companies' operating activities. For the companies that
choose to be taxed by the Presumed Profit Method, PIS will
be 0.65% of the monthly sale in a cumulative way, without
such allowed deductions above mentioned.
7. COFINS- CONTRIBUTION FOR THE
FINANCING OF SOCIAL SECURITY
COFINS is also a federal social contribution levied on the
corporate taxpayer's monthly gross income. COFINS also
has three basic tax regimes: the cumulative, the non-
cumulative regime (created in 2004), and the single-phase
regime. The COFINS tax rate under the cumulative regime
is 3%, while the rate is 7,6% under the non-cumulative
regime. Rates under the single-phase regime vary from
business to business.
Although regulated by different laws, PIS and COFINS
regimes, whether cumulative or non-cumulative, are
basically identical. For cumulative COFINS the difference is
basically the rate (3% for cumulative COFINS and 0.65% for
cumulative PIS) Companies under the Lucro Presumido
pays COFINS according to the cumulative regime, i.e., at
the rate of 3% with no COFINS tax credit available.
8. STATE VALUE - ADDED TAX (ICMS)
ICMS is an almost-true value-added tax on sales of most
goods and certain services. It is payable to state
governments upon imports of goods into Brazil and sales or
transfers of goods within Brazil; it is also payable upon
supply of electricity and certain communication intra-and
interstate transportation services. ICMS is levied on the sale
or physical movement of goods, freight, transportation,
communications services and electric energy. Intrastate
transactions are taxed at 18%, interstate transactions are
taxed at 7% or 12%, and most imports are taxed at a rate
between 18% and 25%. The lower rates normally are
charged on transfers to less developed states. Some states
offer rate reductions or later payment dates as a fiscal
incentive for the installation of factories. Communication
services are taxed at a rate between 13% and 25%.
As of January 1, 2013, the ICMS rate for interstate
transactions involving imported goods 4% (instead of the
standard 7% or 12%) under conditions. The new tax rate,
established by Senate Resolution number 13 of 2012, aims
to eliminate unfair competition among Brazilian states to
encourage customs clearance (and, thus, ICMS revenues)
of imported goods even when the goods are destined for
another state.
5. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
9. SERVICES TAX (ISS)
ISS is the municipal tax levied on provision of services of any
kind by taxpayers located within the jurisdiction of a given
municipality. ISS can also reach services rendered within
the boundaries of a given municipality even though the
services provider is located in another municipality.
The ISS rates vary from municipality to municipality, but
rates cannot be lower than 2% and exceed 5%. The
minimum 2% tax rate for ISS was established businesses to
their jurisdictions. But some municipalities bypass this
minimum 2% rate by granting other incentives that reduce
the ISS overall tax burden, such as tax base reductions. The
tax applies on the taxpayer's monthly services gross income
and the tax is also payable on a monthly basis. The ISS also
applies on imported services.
10. TAX ON MANUFACTURED PRODUCTS (IPI)
IPI is a federal excise tax levied on manufactures products
as they leave the plant where they have been manufactured.
It also applies on imported products at the time of
importation and the first resale of the imported product by
the importer. IPI is not levied on exports. IPI tax rates vary
depending on the products the more essential the lower the
rates. The rates are listed per tariff code in the IPI Table
called "TIPI", which uses the Mercosur Common Tariff,
NCM, as basis.
The exports (export of manufactured products) are exempt
from IPI. Imports of goods (raw material and products) are
normally taxed at the same rate as Brazilian-made products.
Rates change frequently. For imported goods or products,
the IPI (and other taxes due) must be collected upon the
customs clearance of the goods or products.
11.TRANSFER PRICING
Brazil established a transfer pricing system for imports with
affiliated companies of goods, services and rights acquired
abroad. The prices are based on three methods:
Comparative Independent Price (PIC), Resale Price Less
Profit (PRL), or Production Cost Plus Profit (CPL) and
Commodities Price Method (PCI).
Since the end of 2012, Brazil has been changing some of
the methods applicable to Transfer Pricing on imports and
also creating additional methods. Basically, PRL presumed
profit margin was changed from 60% to 40%, 30% and 20%
depending on the business sector in which companies
operate. According to the Federal Law 12,715 of 2012, two
new methods were established, one applicable to imports
and other applicable to exports. In accordance with the
method called, price is defined as the average daily amount
of assets or rights subject to public prices in internationally
recognised commodities and future exchanges.
The taxpayer must disclose transfer pricing method in its
annual tax return and eventually prove that the
corresponding costs, expenses and charges that exceed
the elected transfer pricing method must be added back as
taxable income and subject to the IRPJ and CSL.
12. THIN CAPITALISATION
Brazil has thin capitalization rules force by Law 12,249 since
2010 that limits the ability for corporate taxpayers under
"Lucro Real" to fully deduct interest expenses associated
with loans contracted with foreign related parties or parties
domiciled in low tax jurisdictions and/or under a favourable
tax regime in a foreign location. Such law states a limitation
for corporate income tax purposes related to deductible
interest, accrued or paid, in favour of a foreigner not
resident in a tax haven. Under the rules, interest paid to
related parties that are not located in a tax haven jurisdiction
or that do not benefit from a preferential tax regime may be
6. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
deducted on an accrual basis for corporate income tax
purpose only:
• If the expenses are necessary for the company's
activities; and,
• Both of the following thresholds are met:
a) The related party debt-to-equity ratio does not exceed
2:1 (calculated on the proportion of related party debt to
direct equity investment made by related parties; and,
b) The overall debt-to-equity ratio does not exceed 2:1
based on the proportion of total debt to total direct in
investment made by related parties.
Interest paid to an entity or individual located in a tax haven
or that benefits from a preferential tax regime (regardless of
whether the parties are related) may be deducted only if the
expenses:
• Are necessary for the company's activities; and,
• Do not exceed 30% of the net equity of the Brazilian
company.
The same thin capitalization rules, limits and restrictions
also apply to debt with a foreign company where the
guarantor legal representative, or any intervening party in
the relevant transaction is resident in a low-tax jurisdiction
or is under favourable tax regime. The thin capitalization
rules and limits also apply in transactions in which a financial
institution is merely an intermediary between the Brazilian
borrower and a foreign related party. Any excess interest
will be treated as a non-deductible expense for IRPJ and
CSLL.
13. INTEREST DEDUCTIONS
There is a limitation of interest expenses to be deductible:
a) Loan from foreigner companies (thin capitalisation); and,
b) Loan from abroad must be registered at Central Bank of
Brazil (transfer pricing).
Interest due must be at fair market value and necessary to
business activities and will be subject to withholding tax
(WHT) following the accrual basis. The calculation of
interest on a partner's or shareholder's capital (JCP) is
allowed, however, for remittances if it is considered as
dividends (it means the Brazilian Co needs to be profitable).
The interest is deductible for income tax and social
contribution up to the limit of the official long-term interest
rate (TJLP). Profits for the current period or previous
periods must be at least double the value of the interest to
be distributed. Interest is subject to a 15% withholding tax
at source. Interest should be paid or maybe capitalized.
14. ROYALTIES AND TECHNICAL
ASSISTANCE EXPENDITURES
Royalties are deductible expenses but are restricted to
between 1 % and 5% of sales revenues for companies that
make cross-border trademark and patent royalty payments.
Expenditure incurred in the creation of patents and
manufacturing formulas and processes are considered
capital intangible assets and are amortised over the life of
the asset. This is also true for trademarks, whereas
copyright, software, and franchising are generally
deductible from operational results if they are related to the
activities of the company.
Technical, scientific and administrative expenditures and
royalties paid to foreign companies which have direct or
indirect control of the Brazilian company are deductible if
the contracts are duly registered with the Brazilian Institute
of Industrial Property (INPI) and with the Brazilian Central
Bank (BCB). There are no restrictions for the remittance of
these monies abroad. However, some remittances of funds
to abroad are subject to 15% WHT and 10% of CIDE or only
25% WHT, depending on the case.
7. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
15. WITHHOLDING TAX
Almost all remittances (except dividends) to companies or
persons domiciled abroad are subject to income tax at
source. All personal income in general is subject to
withholding tax at progressive rates from 15% to 27.5%.
Payments are made monthly and a personal income tax
return is filed annually. Capital gains that do not arise from
financial investments are subject to income tax at 15%.
16. THIN CAPITALISATION
Brazil has thin capitalization rules force by Law 12,249 since
2010 that limits the ability for corporate taxpayers under
"Lucro Real" to fully deduct interest expenses associated
with loans contracted with foreign related parties or parties
domiciled in low tax jurisdictions and/or under a favourable
tax regime in a foreign location. Such law states a limitation
for corporate income tax purposes related to deductible
interest, accrued or paid, in favour of a foreigner not
resident in a tax haven. Under the rules, interest paid to
related parties that are not located in a tax haven jurisdiction
or that do not benefit from a preferential tax regime may be
deducted on an accrual basis for corporate income tax
purpose only:
• If the expenses are necessary for the company's
activities; and,
• Both of the following thresholds are met:
a. The related party debt-to-equity ratio does not
exceed 2:1 (calculated on the proportion of
related party debt to direct equity investment
made by related parties; and,
b. The overall debt-to-equity ratio does not exceed
2:1 based on the proportion of total debt to total
direct in investment made by related parties.
Interest paid to an entity or individual located in a tax haven
or that benefits from a preferential tax regime (regardless of
whether the parties are related) may be deducted only if the
expenses:
• Are necessary for the company's activities; and,
• Do not exceed 30% of the net equity of the Brazilian
company.
The same thin capitalization rules, limits and restrictions
also apply to debt with a foreign company where the
guarantor legal representative, or any intervening party in
the relevant transaction is resident in a low-tax jurisdiction
or is under favourable tax regime. The thin capitalization
rules and limits also apply in transactions in which a financial
institution is merely an intermediary between the Brazilian
borrower and a foreign related party. Any excess interest
will be treated as a non-deductible expense for IRPJ and
CSLL.
17. IMPORT TAX
The import tax is a federal tax due upon customs clearance
of the imported products, usually pursuant to an ad valorem
tax rate. The tax rate varies according to the tariff
classification of the imported good under the Mercosur
Common Tariff (NCM), as described in section IPI (Tax on
Manufactured Products) above. The tax base is the sales
price shown in the commercial invoice issued in the country
or origin. However, during customs clearance procedures,
the administration has discretionary powers to reject the
transaction price if there is evidence that it is not market
value. Review of sales price is usually based on international
customs valuation rules.
18. FINANCIAL OPERATIONS TAX (IOF)
IOF is a federal tax that generally applies to different types
of transactions such as loans and credit operations,
insurance policies, and foreign exchange operations for
certain services rendered. IOF regulations are extensive
and change constantly. The tax is mainly used as an
instrument of economic policy to regulate the credit,
currency exchange, insurance, and securities markets
rather than to generate tax revenues.
8. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
19. CONTRIBUTION FOR INTERVENTION IN
THE ECONOMIC DOMAIN (CIDE)
The government introduced a special contribution in 2000.
Brazilian legal entities that license, purchase or otherwise
acquire technological knowledge must pay a special
contribution of 10% on activities such as: trademark,
technical services assistance, administrative services and
any royalty payments. Based on the law in force, CIDE must
even be paid on activities that do not involve the transfer of
technology.
20. DIVIDENDS
Brazil follows a dividend exemption system. Amounts
distributed to shareholders resident abroad (since the
investment is registered at the Brazilian Central Bank
(BCB)) are not subject to withholding tax.
21. INDIVIDUAL INCOME TAX
Brazilian resident individuals are taxable on their worldwide
earnings, as well as gains on the disposal of worldwide
assets and rights. An individual is resident in Brazil:
▪ Has a habitual residence in Brazil;
▪ Works for a Brazilian government department or
agency outside Brazil;
▪ Enters Brazil under a permanent visa;
▪ Enters Brazil under a temporary visa to work and
remains in Brazil for more than 184 days within a 12-
month period.
22. PAYROLL TAX
This is a monthly obligation for social security and other
funds levied on payroll.
Tax Rate
Social Security (INSS) 20%
Accident Insurance (SAT) 1% to 3%
Employee indemnity guarantee
Fund (FGTS)
8%
Education Fund (SE) 2.5%
Other 3.3%
9. TAX GUIDE FOR DOING BUSINESS IN BRAZIL
Request support to specialists before doing business.
If you need more information, contact us:
Marcelo Couceiro
International Partner
marcelo.couceiro@ftaconsulting.com.br
Millenium Office Park
Avenida Chedid Jafet, 222
Torre D | 5º andar
Vila Olímpia | São Paulo | SP
Tel. +55 11 2655-1720
www.ftaconsulting.com.br