Last reviewed - 31 August 2020

Brazil is the world’s fifth largest country. With an estimated population above 210 million, it is one of the world’s most populous countries, after China, India, the United States, and Indonesia.

Brazil is divided into 27 federal units, including Brasilia as its capital. The official language of Brazil is Portuguese, and the currency is the real (BRL).

The Brazilian economy is considered large by almost any standard. Brazil is the ninth largest economy in the world in terms of gross domestic product (GDP) derived from purchasing power parity (PPP) calculations.

Brazil has a diversified economy with strong companies in the agricultural, commodities, industrial, and service sectors; it has one of the biggest middle classes.

Economic indicators seem to point towards the initial signs of a slow but constant economic recovery for Brazil. As of July 2019, accumulated inflation has remained below the projected range by the Brazilian Central Bank and largely under control. The GDP of the second quarter of 2019 shows a growth of 0.4% compared with the with the first, ruling out the risk of technical recession. Further, last published projections for GDP indicated a growth of 0.8% for 2019 as well.

This is considerably below the initial expectations of 2.5% growth for 2019. However, the data shows that important sectors, such as industry and services, are growing, pushing up the Brazilian GDP, despite family consumption currently being low due to certain factors, such as the unemployment rates (contrasted by an increase in informal jobs) and indebtedness. 

Further, 2019 also marks a government transition. The new government platform is based on austerity and major reforms, such as social security/pension reform, tax reform, and even a new labour reform, after the one implemented in 2017. A proposed social security reform has already been approved by the Chamber of Deputies at the National Congress and approval by the Federal Senate is expected before the end of the year.

The tax reform has been enthusiastically discussed in order to reform the Brazilian tax system, including direct and indirect taxes in all federative levels. On the direct tax front, a reduction of the corporate income tax (CIT) is expected, while a withholding tax (WHT) on dividends may be created. For indirect taxes, the various taxes and ancillary obligations that take from the companies nearly 2,000 hours to be prepared and paid should be replaced for one streamlined federal value-added tax (VAT) in a single federal system, a dual federal/state system, or a three-layered tax that also applies at the local level, as neither states nor cities want to yield the power to divvy up revenue to the federal government. Special work has also been done to frame Brazil in the international standards of transfer pricing to reinforce the Brazilian plea to enter in the Organisation for Economic Co-operation and Development (OECD).

PwC came to Brazil in 1915. We now have around 4,200 professionals in 17 offices located in almost every region of Brazil. PwC Brazil offers a network of experienced professionals that have expertise in specific economic sectors of industry and accumulated knowledge of business to assist our clients grow and prosper. The services provided by PwC Brazil in the tax, labour, social security, and foreign capital industry are aimed at helping clients reduce the impact of taxes on their activities whenever the business purpose allows it and always in compliance with the legislation in force.

PwC's awarded tax team has been providing tailored solutions for several foreign entities doing business in Brazil. PwC's clients receive trusted advice about the rather complex corporate tax environment in Brazil.

Quick rates and dates

Corporate income tax (CIT) rates
Headline CIT rate (%)

34 (composed of IRPJ at the rate of 25% and CSLL at the rate of 9%).

Corporate income tax (CIT) due dates
CIT return due date

Last working day of July.

CIT final payment due date

Generally, by the last working day of March of the subsequent year (when IRPJ and CSLL are calculated annually). When IRPJ and CSLL calculations are made on a quarterly basis, the taxpayer can pay the taxes in one single quota, by the last working day of the subsequent month to the end of the quarter, or in three instalments, the first one starting from the subsequent month to the end of the quarter.

CIT estimated payment due dates

Normally monthly instalments, but there is an option of quarterly instalment.

Personal income tax (PIT) rates
Headline PIT rate (%)


Personal income tax (PIT) due dates
PIT return due date

Last business day of April

PIT final payment due date

Last business day of April

PIT estimated payment due dates

By the last working day following the month in which the income is received, credited, or paid, whichever occurs first.

Value-added tax (VAT) rates
Standard VAT rate (%)

Federal VAT (IPI): normally around 10% to 15%;

State sales and service tax (ICMS): normally around 18% to 20% (lower rates apply to inter-state transactions).

Withholding tax (WHT) rates
WHT rates (%) (Div/Int/Roy)

Resident: NA / 15 to 22.5 / NA;

Non-resident: 0 / 15 / 15;

Non-resident companies in tax haven countries: 0 / 25 / 25.

Capital gains tax (CGT) rates
Corporate capital gains tax rate (%)

34% for legal entities (considered as part of regular income and subject to regular CIT rates).

Individual capital gains tax rate (%)


Net wealth/worth tax rates
Headline net wealth/worth tax rate (%)


Inheritance and gift tax rates
Inheritance tax rate (%)


Gift tax rate (%)


NA stands for Not Applicable (i.e. the territory does not have the indicated tax or requirement)

NP stands for Not Provided (i.e. the information is not currently provided in this chart)

All information in this chart is up to date as of the 'Last reviewed' date on the corresponding territory Overview page. This chart has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this chart without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this chart, and, to the extent permitted by law, PwC does not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this chart or for any decision based on it.