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by Arnaud Bleuez (Author)
Brazil with its tremendous economic potential is also a complex country where doing business can prove to be difficult. In 2021, Brazil is ranked by the IMF at the 124th position (out of a total of 189 countries) on "Ease of doing business". The assessment for taxes is even worse: 184th position.
Brazilian taxes are among the world's trickiest. Due to four main reasons:
- The organization is complex. It's a Federal Republic; outside Brasilia (Federal District), there are 26 Federal States, and each of these States have thousands of Municipalities. They all have strong taxation powers.
- As a result of the very large number of players in this matter, there are countless exceptions and many litigations (among other things, as States compete with each other to maximize budget income; and so do Municipalities).
- Rules, methods of calculation, and above all tax rates are constantly changing. The Brazilian industrial lobby (among its members are many international automobile manufacturers with plants on Brazilian territory), the exchange rate of the Brazilian currency against the USD, the growth of the economy, and many other indicators are the reasons for constant changes in taxation.
- The Brazilian government has a protectionist policy. Taxes on imports can be very high; and on top of that, administrative procedures and the calculation of these taxes are exceptionally tricky.
Brazilian Taxes: what you need to know is a book outlining accounting principles and the main taxes in force in Brazil. It's not about the Tax Code, it's about the application of the Tax Code in operational management.
You have choices to make; this book tells you which ones and how to make the best one, among other issues with respect to selecting your tax regime (Corporate Tax). It contains numerical examples, accounting entries and cases of tax optimization. You will also find a good deal of information, some macroeconomic elements, but mainly practical techniques such as tax calculation methods, for federal, state or local taxes, or information about employer costs and Social Security contribution.
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