The general corporate tax burden in Brazil is typically 34%, consisting of 25% Corporate Income Tax (IRPJ) and 9% Social Contribution on Net Profit (CSLL); certain financial institutions are subject to higher CSLL rates. Capital gains of non-residents are generally subject to progressive rates ranging from 15% to 22.5%, while beneficiaries in tax-favored regions are typically subject to a 25% rate. Companies may choose to calculate taxes based on annual actual profit with monthly prepayments, or to calculate taxes on a quarterly basis; the annual tax balance is generally due by the last working day of March of the following year, and the annual tax return is generally required to be filed by the last working day of July of the following year.
Brazil does not have a single general VAT rate; the current indirect tax system mainly comprises ICMS, ISS, IPI, and PIS/COFINS, with rates varying by tax type and transaction category.
Regarding withholding tax, effective from January 1, 2026, dividends paid to non-residents are generally subject to a 10% withholding tax, while interest and royalties paid to non-residents are generally subject to 15%; certain payments made to tax-favored regions may be subject to a 25% rate. For resident individuals, interest-related financial income is generally subject to withholding tax at rates ranging from 15% to 22.5%, whereas dividends are generally subject to a 10% withholding tax only when monthly distributions by a single company exceed BRL 50,000.
Brazil does not have a single general VAT rate; the current indirect tax system mainly comprises ICMS, ISS, IPI, and PIS/COFINS, with rates varying by tax type and transaction category.
Regarding withholding tax, effective from January 1, 2026, dividends paid to non-residents are generally subject to a 10% withholding tax, while interest and royalties paid to non-residents are generally subject to 15%; certain payments made to tax-favored regions may be subject to a 25% rate. For resident individuals, interest-related financial income is generally subject to withholding tax at rates ranging from 15% to 22.5%, whereas dividends are generally subject to a 10% withholding tax only when monthly distributions by a single company exceed BRL 50,000.
Brazil Tax Brief
Time of Update 3/24/2026
Brazil Corporate Income Tax (CIT)
Brazil Withholding Tax (WHT)
Brazil Value-Added Tax (VAT)
Brazil Capital Gain Tax (CGT)
Brazil Effective Tax Rate (ETR)
Composite Effective Marginal Tax Rate:
15%
Additional info
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TKEG Expat™ (Test) Brazil Corporate Tax Guide
1.
Brazil Corporate Income Tax (CIT)
In Brazil, the general corporate income tax (CIT) rate is 34%, typically consisting of 25% IRPJ and 9% CSLL. The CIT return is generally required to be filed by the last working day of July. If the annual actual profit method is adopted, the annual balance of IRPJ and CSLL is generally due by the last working day of March of the following year; if calculated on a quarterly basis, the tax may be paid in a single installment by the last working day of the month following the end of the quarter, or in up to three installments.
2.
Brazil Value-Added Tax (VAT)
In Brazil, the Value-Added Tax (VAT) system consists of several layers of taxes. The federal excise tax (IPI) ranges from 5% to 30%, while federal VATs (PIS/COFINS) are charged at a combined rate of 3.65% for the cumulative system or 9.25% for the non-cumulative system. The state VAT (ICMS) typically ranges from 17% to 20%, with lower rates of 4%, 7%, and 12% applied to inter-state transactions. Additionally, a municipal service tax (ISS) applies to services, ranging from 2% to 5%. These combined taxes contribute to the overall VAT system in Brazil, affecting goods and services at different levels.
3.
Brazil Capital Gains Tax (CGT)
In Brazil, capital gains tax (CGT) for corporate entities (residents) is taxed at 34%, as it is treated as part of regular income and subject to the corporate income tax (CIT) rate. For non-residents, the withholding tax (WHT) on capital gains ranges from 15% to 22.5%, while for non-residents from tax haven countries, the rate is 25%. For individuals, the capital gains tax rate is 22.5%.
4.
[color=rgb(69, 69, 69)]Brazil Transfer Tax (ITBI) [/color]
In Brazil, a municipal property transfer tax (ITBI) is applied to the transfer of immovable property, with rates varying by municipality. In São Paulo, the ITBI rate is 3%, applied to either the market value or the transaction price of the property, whichever is higher. Additionally, a state property transfer tax (ITCMD) is payable on inheritances and donations of goods and rights, with rates varying across states. In São Paulo, the ITCMD rate is 4%.
![[color=rgb(69, 69, 69)]Brazil Transfer Tax (ITBI) [/color]](https://cfmedia.tkegexpat.cn/cdn-cgi/image/w=256,h=,dpr=1,fit=contain/f1727438711290x330846596901761340/photo-1525693170072-2bf3c8390a4a%3Fw%3D900%26auto%3Dformat%26fit%3Dcrop%26q%3D60%26ixlib%3Drb-4.0.3%26ixid%3DM3wxMjA3fDB8MHxzZWFyY2h8MTV8fEJyYXppbCUyMGNpdHl8ZW58MHwxfDB8fHwy)
5.
Brazil Personal Income Tax (PIT)
In Brazil, the personal income tax (PIT) rate is 27.5%. The PIT return and final payment are both due by the last working day of May. For estimated payments, they must be made by the last working day following the month in which the income is received, credited, or paid, whichever occurs first.
