The country has more than 41 thousand tax laws, and even so taxes increase at a dizzying speed in the country. According to the Brazilian Institute of Planning and Taxation (IBPT), around 46 new tax laws are published every business day. As a result, commerce has difficulty keeping up with the collection of these federal taxes. As a result, 95% of companies pay more taxes than they should.
To overcome these obstacles, it is necessary to understand the Brazilian tax system and hire qualified professionals to do a good tax planning. They can help you choose the most suitable tax regimes for your company, as well as plan spending on documentation, accounting, payroll, among other measures.
Find out how much trade pays tax
The calculation and form of payment of these taxes change according to the tax regime adopted by each company. That is why doing good tax planning is so important. Use of the sales tax calculator is important there.
The highest tax levied on trade in general is the Tax on Circulation of Goods and Services (ICMS). But other taxes are also levied on the sector, such as the IRPJ, the Social Integration Program (PIS), the Contribution to the Financing of Social Security (Cofins), and employer’s INSS, among others.
Due to its practicality, it is the tax regime most used by micro and small businesses. As its name implies, it provides for the payment of several taxes on a single payment slip, making control much easier and faster.
The tax is paid from a single rate, and is therefore calculated according to a percentage of the companies’ revenues. However, as their earnings increase, the tax also rises.
To improve this situation, a reform, in force since 2017, introduced a rate to be deducted from the tax due, along the same lines as the Physical Income Tax. As a result, the impact of this tax growth has been lessened.
For establishments that invoice up to R $ 180 thousand per year, the taxes charged have a rate of 4% with no value to deduct. For those who earn between R $ 3.6 million and R $ 4.8 million, this percentage can reach up to 19%.
It is worth noting that these rates are levied on companies’ revenues, not on profits. Therefore, the calculation is made on all revenues obtained, without operating costs being subtracted.
Know the rates charged on real profit
As the Simples tax rate goes up with billing, there are situations in which it ends up strangling the growth of companies. In these cases, migrating to another tax regime is more advantageous.
One option is to migrate to Real Profit, a regime in which taxes are individualized and calculated on the profit of the business, requiring greater control of the company. The rates for this regime are as follows:
- Cofins 7.6% of gross monthly revenue.
- PIS` 1.65% of gross monthly revenue.
- CSLL 9% on net income for the month.
- IRPJ 15% on net income for the month.
ICMS 12%, 17% or 25% on the calculated calculation base value (inputs deducted from outputs). The rates vary according to the product and the state.