Corporate - Taxes on corporate income

Last reviewed - 31 August 2020

Brazilian resident companies are taxed on worldwide income. Non-resident companies are generally taxed in Brazil through a registered subsidiary, branch, or PE, based on income generated locally. Other than that, non-resident companies can be subject to withholding tax (IRRF) on income derived from a Brazilian source.

Corporate income tax (IRPJ) is assessed at the fixed rate of 15% on annual taxable income, using either the 'actual profits' method (APM) or the 'presumed profits' method (PPM) (see the Income determination section).


Corporate taxpayers are also subject to a surcharge of 10% on the annual taxable income in excess of 240,000 Brazilian reais (BRL).

Social Contribution on Net Income (CSLL)

All legal entities are generally subject to CSLL at the rate of 9% (except for financial institutions, private insurance, as well as certain other prescribed entities, which are taxed at the rate of 15%), which is not deductible for IRPJ purposes. The tax base is the profit before income tax, after some adjustments, depending on the calculation method (i.e. APM or PPM).

Local income taxes

Corporate income taxes are levied only at the federal level (i.e. there are no state or municipal income taxes).