Taxes in Brazil


Every country has its own rules and regulations for tax payment and everyone is bound to pay taxes provided he or she comes under tax slab. But if you are a Brazilian or if you live in Brazil then it becomes a costly affair. Brazil is a country where one third of your earning goes as a tax and for this reason if you do not have an accurate calculation then you might land in a problem. There are many taxes in Brazil for different assets you hold and for the Brazilian government services. Some of them are IPVA, ICMS, IPTU, etc. IPVA is a tax payable for automobile vehicles that you own. This sounds simple but actually it is not because it depends on many factors and again because of these factors it becomes tricky to get the accurate calculation of these taxes. This tax depends on state of the vehicle and the state from which you obtained the license for it. And again the IPVA rates depend on the type of fuel you use and the type of vehicle you have. So there are different rates of IPVA for buses, cars, mini buses, etc.

Another kind of tax is denoted by ICMS is a tax which is levied for goods and services. It is charged for movement and transportation of goods or services. These again depend on the type of the goods and the state of the goods being moved or circulated. For example if it is a solid goods or any liquid things like any gas or a liquefied fuel. This tax is levied on operations of any kind of industrialised products or services. If you are involved in import of goods then you are liable to pay to this tax but you can be exempted from this if you are exporting any goods. Trading of gold is also excluded from the tax paying.

Another tax that is present in Brazil is ITCD, which is payable when one receives any property or money on someone’s death or as inheritance. Not only inherited assets or money is taxable but even when you receive anything as donation the only it becomes taxable. Only assets or donation up to certain mo entry limit is non-taxable. So we get to see there are so many taxes in Brazil, and it is important to know that there are few more taxes apart from above mentioned taxes. So what many people do is that they hire Detran’s consultant at for their tax calculation when they think that tax calculation is becoming complicated.