The general corporate tax burden in Brazil is typically 34%, consisting of 25% Corporate Income Tax (IRPJ) and 9% Social Contribution on Net Profit (CSLL); certain financial institutions are subject to higher CSLL rates. Capital gains of non-residents are generally subject to progressive rates ranging from 15% to 22.5%, while beneficiaries in tax-favored regions are typically subject to a 25% rate. Companies may choose to calculate taxes based on annual actual profit with monthly prepayments, or to calculate taxes on a quarterly basis; the annual tax balance is generally due by the last working day of March of the following year, and the annual tax return is generally required to be filed by the last working day of July of the following year. Brazil does not have a single general VAT rate; the current indirect tax system mainly comprises ICMS, ISS, IPI, and PIS/COFINS, with rates varying by tax type and transaction category.
Regarding withholding tax, effective from January 1, 2026, dividends paid to non-residents are generally subject to a 10% withholding tax, while interest and royalties paid to non-residents are generally subject to 15%; certain payments made to tax-favored regions may be subject to a 25% rate. For resident individuals, interest-related financial income is generally subject to withholding tax at rates ranging from 15% to 22.5%, whereas dividends are generally subject to a 10% withholding tax only when monthly distributions by a single company exceed BRL 50,000.