Every entrepreneur needs to know that in Brazil there are three types of tax regimes: Simples Nacional (Simplified Tax Regime), Lucro Presumido (Presumed Profit), or Lucro Real (Actual Profit). 

It’s important to emphasize that choosing the appropriate tax regime when opening a new business depends on various factors, such as the company’s revenue, the type of activity carried out, profit margin, among others. 

“It’s worth noting that each regime has its specific tax obligations, such as filing declarations, issuing invoices, paying taxes, and complying with ancillary obligations. It’s crucial to be in compliance with these obligations to avoid legal and tax issues”, Marcelo Nastromagario. 

Get to know the Brazilian tax regimes and find out which one best suits your company: 

Simples Nacional

– A simplified and unified tax regime aimed at micro and small businesses.
– Simples Nacional encompasses various taxes (federal, state, and municipal) in a single payment slip.
– It features progressive tax rates, meaning the higher the annual gross revenue, the higher the applicable rate. 

Lucro Presumido

– A tax regime where the company is presumed to have a predetermined profit margin according to tax legislation.
– Taxes are calculated based on this margin.
– More suitable for companies with profit margins higher than those established by law. 

Lucro Real

– A tax regime where taxes are calculated based on the actual net profit of the company, as determined by its accounting.
– Applicable to companies with reduced profit margins or those that do not fit into other regimes. 

Each regime has its own set of characteristics and specific tax obligations, so it’s important for entrepreneurs to understand these differences and choose the most suitable regime for their business to ensure compliance and optimize tax efficiency. 

Don’t let unfamiliarity with local taxes hold back your global expansion plans. Talk to our team members.