If you are thinking on exporting
services to Brazil, must consider these five tips to calculate your profits,
because of the incidence of some taxes.
1º) Brazil has about 92
different taxes, so it’s a good idea take help of an expert;
2º) On the imports of services
Brazil has the following taxes:
1.
IRRF (withholding income tax);
2.
CIDE
(contribution of intervention in the economic domain);
3.
PIS-importação
(contribution for the social integration program);
4.
COFINS-importação
(contribution for the financing of the social security system);
5.
IOF
(tax on finance operations);
6.
ISS (tax on services).
3º) Every import of services,
as every import of goods, obligate the beneficiary in Brazil to some secondary
obligations, like the registration of the operation in the SISCOSERV web system.
This virtual trade system is the government tool to control the trade on
services. The Brazilian Federal Revenue investigate foreign payments, to
certificate about the origin of the resources and its motivation. The system is
used to generate trade statistics, but also to investigate cases of fraud,
money laundering, and other crimes. So, it is important to provide all the
required information to avoid trouble;
4º) According to the RIR/1999
(Brazilian Income Tax Law), international agreements repeal or amend national
legislation, so it is important to check if there is any international tax law
treaty, like bi taxation agreements, before to start your services;
5º) Some operations are taxed
with aliquot zero, and some are dispensed of the withholding income tax
payment.
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