Corporate Income Tax (IRPJ) is one of the most relevant taxes for Brazilian businesses .
Understanding how taxes work for companies and the different taxation regimes is essential to comply with the Law and optimize tax management.
Continue reading to understand in a practical way what IRPJ is, how it works and what the main types of applicable taxation are.
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What is IRPJ?
Corporate Income Tax ( IRPJ) is a federal tax levied on corporate profits , regardless of their size.
This tax is generated by the profit or gain taiwan whatsapp number data by the company in a specific period . It is a tax obligation for all legal entities registered in Brazil.
Failure to pay IRPJ may result in fines and interest . Furthermore, it may negatively impact the company’s image before the tax authorities.
Therefore, it is essential to keep collections up to date , ensuring both compliance with legal obligations and the integrity of the business’s reputation.
How does IRPJ work for each taxation model?
Taxation models are the different when will operators pay compensation? that governments use to collect taxes and duties from taxpayers.
In Brazil, the main taxation models are Simples Nacional, Lucro Real and Lucro Presumido , intended for companies of different sizes and sectors. Each has its own rules and forms of taxation, in addition to different forms of declaration.
However, there are some other variations as well — such as Arbitrage Profit .
In general, the differences are related to the profits and income reported by companies during the fiscal year. Check out how each tax regime works and how the company qualifies for each of them:
1. Simple National
Simples Nacional is a simplified beb directory regime for micro and small companies that have a turnover of up to R$4.8 million per year.
Simples Nacional is a unified tax regime, which includes the following taxes:
- IRPJ;
- CSLL;
- Social Integration Program (PIS);
- Contribution to Social Security Financing (COFINS);
- Tax on Industrialized Products (IPI);
- Tax on the Circulation of Goods and Services (ICMS);
- Service Tax (ISS).
The amount to be paid is calculated based on the company’s revenue and varies according to the economic activity carried out. For example:
Trade and industry
In this segment, the tax is between 0.27% and 0.54% , the first being for companies with income between R$360 thousand and R$540 thousand. From this value, the percentage increases up to the maximum limit of the category, between R$3.42 million and R$3.6 million.
Services and leasing of movable property
In this segment, the incidence of the tax also starts in the third bracket, at 0.48% . In addition, the maximum rate can also reach 0.81%.