Brazil - Other taxes and levies

Brazil - Other taxes and levies

Taxation of international executives

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Social security tax

Are there social security/social insurance taxes1 in Brazil? If so, what are the rates for employers and employees?

Any employee on a Brazilian payroll is subject to social security contributions. The rates vary depending on the individual’s salary level. Social security tax is withheld at rates between 7.65 percent and 11 percent of monthly gross salary up to a prescribed maximum amount (which is currently BRL405.86). The employer’s contribution is determined at the rate of approximately 36.3 percent of the gross salary with no limitation on the amount of earnings subject to contributions. This includes an 8.5 percent contribution of the employer to the Brazilian severance fund (FGTS).

Employer and employee

 

 

Paid by employer

Paid by employee

Total

Social security

20.0% - 22.5%

11.0% with cap

Varies

Severance indemnity

8.0%

None

8.0%

 

Gift, wealth, estate, and/or inheritance tax

Are there any gift, wealth, estate, and/or inheritance taxes in Brazil?

Wealth taxes

A net worth statement does presently form part of the individual income tax return, although no tax is assessed.

Inheritance and gift taxes

According to decree No. 46655, issued 1 April 2002, a 4 percent (ITCMD) inheritance and gift tax was implemented for the state of São Paulo. This rate may differ in other states within Brazil. Under certain circumstances a portion of the inheritance or gift may be exempt from tax. 

Real estate tax

Are there real estate taxes in Brazil?

Individuals owning real state in Brazil are subject to real state taxes (IPTU). This is a municipal tax calculated on value of each property as assessed by the authorities. Usually the tax is calculated taking into account the location and size of the property that can be land, house, apartments, business offices, and so on.

Sales/VAT tax

Are there sales and/or value-added taxes in Brazil?

There are no sales or VAT taxes in Brazil.

Unemployment tax

Are there unemployment taxes in Brazil?

There is no unemployment tax in Brazil.

Other taxes

Are there additional taxes in Brazil that may be relevant to the general assignee? For example, customs tax, excise tax, stamp tax, and so on.

Local taxes

A municipal building tax, normally passed on to tenants, is the only direct local tax2.

FOOT NOTES

1Regulamento do Plano de Custeio da Previdência Social

2Regulamento do Imposto Predial e Territorial Urbano

© 2016 KPMG Tax Advisors-Assessores Tributrios Ltda., a Brazilian limited liability company and a member firm of the KPMG network of independent member firms affiliated with KPMG International, a Swiss cooperative. All rights reserved.

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