11th February, 2019
Commodities trading firm Louis Dreyfus expects faster switching between sugar and ethanol production in Brazil, with more flexible mills leading to “dramatic” price-driven shifts.
A list of the main taxes collected from individuals and companies in Brazil:
II (Imposto de Importação) – Import tax.
IOF (Imposto Operações Financeiras) – A tax levied on financial operations and assessed on different types of transactions such as credit, foreign exchange, shares, insurance & shares.
IPI (Imposto Sobre Produtos Industrializados) – Tax on industrialized products. Charged to industries & importers of industrialised products.
IRPF (Imposto sobre a Renda Pessoa Física) – Personal income tax. Applies to the income of Brazilian residents.
IRPJ (Imposto sobre a Renda Pessoa Jurídica) – Company income tax. Applies to company profits.
ITR (Imposto sobre a Propriedade Territorial Rural) – Tax on rural territorial ownership.
Cide (Contribuição de Intervenção no Domínio Econômico) – Contribution for intervention in the economic domain. Applies to petroleum and natural gas and their derivatives, and upon fuel alcohol such as ethanol.
Cofins (Contribuição para Financiamento da Seguridade Social) – Contribution for the financing of social security. Charged to companies.
CSLL (Contribuição Social sobre o Lucro Líquido) – A company 'contribution' charged on net profit.
FGTS (Fundo de Garantia do Tempo de Serviço) – Is basically a Government unemployment insurance fund that companies are required to pay into each month based on their employees wages. A percentage of the salary of each employee is deposited by the company into a Government scheme which then provides unemployment or retirement assistance to those employees if they are dismissed or retire.
INSS (Instituto Nacional de Seguridade Social) – National Social Security Institute. Percentage of each employee’s salary charged to a company and the employee for health care. The value of the contribution varies according to the range of activities.
PIS (Programa de Integração Social) & Pasep (Programa de Formação do Patrimônio do Servidor Público) – Programs for social integration of public service employees & other workers that earn less than twice the minimum wage. Charged to companies.
ICMS (Imposto sobre operações Relativas à Circulação de Mercadorias e sobre prestações de Serviços de transporte interestadual, intermunicipal e de comunicação) – A tax on the circulation of goods. Also applies to interstate and inter-municipal transport and telephony. It operates in a similar fashion to a US sales tax or a State based VAT.
IPVA (Imposto sobre a Propriedade de Veículos Automotores) – Tax on the ownership of automobiles.
ITCMD (Imposto sobre a Transmissão Causa Mortis e Doações) – Tax on the inheritances and donations.
IPTU (Imposto Predial e Territorial Urbano) – Tax on buildings and urban land.
ISS (Imposto Sobre Serviços) – Tax on services. Charged to companies.
ITBI (Imposto sobre a Transmissão de Bens Imóveis) – Tax on the transmission of property rights between two living parties. Applies to the change of ownership of real estate or the rights to control it when both involved parties are living. In the case of ownership or rights transfers due to death(eg. inheritance), then ITCMD applies instead. Payable by the purchaser of the property.