10 Taxes With Most Revenue in Brazil
In Brazil, the sum amounted by taxes forms an important part of the Brazilian GDP. In this article, we will look at the top 10 taxes that amounted to more money for Brazil in 2013.
Tax collection in Brazil is an important source of income for the government. 2013 was a record breaking year as taxes, federal contributions and other revenues accounted for BRL 1,13 trillion, corresponding to around 23,5% of the Brazilian gross domestic product. Compared to 2012, the registered growth was 4,08%.
1. ICMS
ICMS stands for Imposto sobre Circulação de Mercadorias e Serviços, which is Portuguese for Tax on Circulation of Goods and Services. ICMS is a state value-added tax on sales and services and applies to the movement and supply of goods, as well as to transportation and communication services. ICMS is paid by individuals and legal entities who commercialize any goods.
In 2013, ICMS amounted to: BRL 310.094 million.
2. COFINS
COFINS stands for Contribuição para o Financiamento da Seguridade Social, which is Portuguese for Contribution for Social Security Financing. It is a federal social contribution levied on the gross revenue of businesses in general. All private legal entities or the equivalent are COFINS taxpayers. Together with other social contributions, such as PIS and INSS, COFINS is destined to finance the welfare, health and social assistance policies in Brazil.
In 2013, COFINS amounted to: BRL 201.527 million.
3. IRRF
IRRF stands for Imposto de Renda Retido na Fonte, which is Portuguese for Income Tax Withheld at the Source. IRRF is a federal tax applied to labor and capital income, remittances abroad and other incomes such as prizes, advertising services provided by legal entities and remuneration for services provided by legal entities.
In 2013, IRRF amounted to: BRL 140.209 million.
4. IRPJ
IRPJ stands for Imposto de Renda sobre Pessoa Jurídica, which is Portuguese for Corporate Income Tax. IRPJ is a federal tax charged on the net profits of any company - public or private - established in Brazil, regardless of their purposes or nationality.
In 2013 IRPJ amounted to: BRL 126.149 million.
5. CSLL
CSLL stands for Contribuição Social sobre o Lucro Líquido, which is Social Contribution on Net Profits. It is one of the federal contributions aimed at financing the Brazilian social security system and its payment is required from every legal entity based in Brazil.
In 2013, CSLL amounted to: BRL 65.732 million.
6. PIS/PASEP
PIS/PASEP stands for Programa de Integração Social/Programa de Formação do Patrimônio do Servidor Público, which is Portuguese for Social Integration Program/Program of Formation of the Patrimony of the Public Servants. PIS/PASEP are federal social contributions, payable by legal entities, in order to finance the payment of the insurance unemployment allowance and participation in revenues from agencies and entities for public and private workers.
In 2013, PIS/PASEP amounted to: BRL 51.889 million.
7. IPI
IPI stands for Imposto sobre Produtos Industrializados, which is Portuguese for Tax on Industrialized Products. The IPI is a federal tax, and applies to national and foreign products which have been modified in some way for consumption or use. The basis of calculation is the retail sales price in Brazil. For imports, it is the sales price of the goods plus import duty and any other required fees.
In 2013, IPI amounted to: BRL 47.101 million.
8. II
II stands for Imposto sobre Importação, which is Portuguese for Import Tax. The II is a federal tax and is charged on imports, to the recipient of the international shipment named by the sender and the one who is acquiring the commodity and the bidder of seized or abandoned products.
In 2013, II amounted to: BRL 37.197 million.
9. IOF
IOF stands for Imposto sobre Operações Financeiras, which is Portuguese for Tax over Financial Operations. IOF is a federal tax charged on financial transactions, such as operations involving credit, currency exchange, insurance and security.
In 2013, IOF amounted to: BRL 29.415 million.
10. IRPF
IRPF stands for Imposto de Renda de Pessoas Físicas, which is Portuguese for Individual Income Tax. The IRPF is a federal tax charged on every individual's annual income and other sources of revenue. Individuals that earn less than two times the minimum salary are not liable to pay personal income tax. Brazilians living abroad but receiving taxable income from Brazil are also subject to pay IRPF.
In 2013, IRPF amounted to: BRL 26.452 million.