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Brazil
Overview
Last reviewed - 02 May 2025Brazil is the world’s fifth-largest country by area. As of early 2026, Brazil’s population is estimated at approximately 213.6 million, ranking it as the seventh-most populous country in the world, behind India, China, the United States, Indonesia, Pakistan, and Nigeria.
Brazil is divided into 27 federal units (26 states plus the Federal District), with Brasília as the capital. The official language is Portuguese, and the currency is the real (BRL).
Brazil continues to be one of the world’s major economies. In 2026:
- By gross domestic product (GDP) based on purchasing power parity (PPP), Brazil ranks eighth globally, with an estimated PPP GDP of around 5.16 trillion United States dollars (USD).
- By nominal GDP, Brazil ranks just outside the global top ten, with about USD 2.29 trillion.
The economy is diversified, with significant output in agriculture, commodities, manufacturing, and services, and a large urban middle class.
Brazil experienced a strong post‑pandemic recovery through 2022–2024, with real GDP growth averaging 3.2% across those three years, surpassing International Monetary Fund (IMF) expectations. However, in 2025, the economy slowed and GDP growth projections were revised to 3.5% for 2024 and 2.1% for 2025.
As of early 2026, the outlook remains muted, with elevated real interest rates and fiscal constraints weighing on activity.
Despite challenges, unemployment reached historic lows in 2024, and poverty declined compared to pre‑pandemic years.
PwC Brazil
PwC came to Brazil in 1915. We now have around 4,000 professionals in 15 offices located in almost every region of Brazil. PwC Brazil offers a network of experienced professionals with expertise in specific economic sectors of industry and accumulated knowledge of business to assist our clients grow and prosper.
PwC's awarded tax team provides tailored solutions for clients doing business in Brazil, who receive trusted advice about the complex local corporate tax environment.
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 (%) |
27.5 |
| Personal income tax (PIT) due dates | |
|---|---|
| PIT return due date |
Last working day of May |
| PIT final payment due date |
Last working day of May |
| 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 (%) |
Excise federal tax (IPI): Normally between 5% and 30%; Federal VATs (PIS/COFINS): Generally a combined rate of 3.65% (cumulative) or 9.25% (non-cumulative); State VAT (ICMS): Normally between 17% and 20% (lower rates apply to inter-state transactions, varying between 4%, 7%, and 12%); Municipal Service Tax (ISS): 2% to 5% (cumulative). |
| Withholding tax (WHT) rates | |
|---|---|
| WHT rates (%) (Dividends/Interest/Royalties) |
Resident individuals: 10* / 15 to 22.5 / NA; Non-resident: 10 / 15 / 15; Non-resident in tax haven countries: 10 / 25 / 25. * monthly/annual payments exceeding BRL 50,000/BRL 600,000 |
| Capital gains tax (CGT) rates | |
|---|---|
| Headline corporate capital gains tax rate (%) |
Resident: 34 for legal entities (considered as part of regular income and subject to regular CIT rates); Non-resident: 15 to 22.5 (WHT); Non-resident in tax haven countries: 25 (WHT). |
| Headline individual capital gains tax rate (%) |
Resident: 15 to 22.5 Non-resident: 15 to 22.5 (WHT); Non-resident in tax haven countries: 25 (WHT). |
| Net wealth/worth tax rates | |
|---|---|
| Headline net wealth/worth tax rate (%) |
NA |
| Inheritance and gift tax rates | |
|---|---|
| Headline inheritance tax rate (%) |
8 |
| Headline gift tax rate (%) |
8 |
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