Understanding the Federal Structure and the Taxes

There are federal, state and municipal charges and they are not always integrated. That is, while the federals have a single system for the entire country, the state ones follow specific laws and rules, as well as the municipal ones. This only contributes to making the work of accounting professionals even more complex.

So that you do not get lost in the middle of the real cascade of taxes that affects your transactions, we have listed here all the federal, state and municipal taxes that you or your company pay every month. Could you tell how many there are in total before reading this article?

Import Tax

It is a federal tax that, as its name implies, applies to all imported products. It does not matter if you are an individual or a legal person: when you bring goods from another country they will only have entry to the country if the II is collected. With the tax software for professionals the best results can be there.

There are two types of taxation here: simplified taxation regime (for products whose value is equal to or less than US $ 100) and special taxation regime (for products whose value is above US $ 100 and less than or equal to US $ 3 thousand).

Tax on Industrialized Products

Another tax of the Union’s competence, the Tax on Industrialized Products must be paid by importers or traders and owners of industries. The fees are levied on imported goods as well as on nationally manufactured products. If the good went through an industrialization process, the rate is generated.

Tax on Financial Operations

This is also a very recurrent tax in the lives of Brazilians. The IOF focuses on foreign exchange, credit or insurance operations.

  • Whether Individual or Legal Entity, the incidence of the tax is exactly the same. It is described in detail in Article 63 of the National Tax Code.

Corporate Income Tax

It is the tax that is levied on the gross income of companies, regardless of the size and tax regime adopted. There are two alternative tax rates:

  • 6%, when collected on the accumulated inflationary profit
  • 15%, when collected on real profit.
  • The IRPJ declaration can be made every three months (March, June, September and December) or once a year.

Individual Income Tax

The IRPF is the tax on the gross income of each one of us. Although it can be charged to all Brazilians, only those whose earnings are greater than R $ 28,559.70 per year are taxed. The rate varies according to monthly income, which can range from 7.5% to 27.5%. Some income is not taxable, such as savings accounts, scholarships, pensions and inheritances.

Tax on Rural Territorial Property

It is a federal tax levied every year on landowners. Failure to pay implies an interest charge of 1% per month from the due date. The ITR applies to both individual and corporate properties.