巴西法律系统【英文】

BRAZIL LEGAL

REQUIREMENTS

TAXES

12/15/2014

Topics ●Introduction

●Main Taxes

●Main Tax Books and Accessory Obligations ●SPED

●Substitui??o Tributária

●Off Set rules ●Statute of Limitations

●Tax Incentives

●Accounting Practices in Brazil

●Banking communication

?The Brazilian tax system is based on

?the Federal Tax Code of 1966

?the Federal Constitution of 1988.

?There are three jurisdictions and tax collection levels in Brazil

?Federal

?State

?Municipal

?The Federal Tax System is managed by the Receita Federal do Brasil –RFB, which is part of the Ministry of the Economy. States and municipalities have similar structures.

Basic tax requirements to operate in Brazil

?The company needs to define in the Article of Incorporation, the types of activities that it will perform (services, sales, manufacturing, distribution, etc);

?The Article of Incorporation needs to be registered in the Registry of Commerce (Junta Comercial);

?In addition, such entity must be registered in:

?the Federal Tax Authorities -CNPJ

?the State Tax Authorities –State Inscription (depending on the activities performed)?the Municipal Tax Authorities –Municipal Inscription

?the Social Security System

?the Central Bank and Siscomex System (for import process)

Nota Fiscal -Invoice

?According to the Brazilian Tax Legislation, it’s mandatory that any commercial transaction (involving goods or services) or any goods movement have a invoice (Nota Fiscal), even that it can be exempted of taxes. Examples:

-Raw or packaging material sale;

-Finished goods sale or resale;

-Return goods to the Supplier;

-Send fixed assets to be repaired in a third party;

-Send raw and packaging material to be manufactured in a third party;

-Transfer finished goods from a facility to a distribution centre;

-Render services (maintenance, cleaning, manufacture, etc)

?Nowadays the invoice needs to be printed in a special form;

?To print these forms, the company needs to have a previous authorization from the Tax Authority (AIDF). Generally the Tax Authority authorize the company to print a determined number of forms (example 1.000 forms).

?Tax rate can vary according to State, product, Municipality or service

?Taxes are applied at different points in the process (example sales or services taxes can be calculated and paid in the invoice and/or in the tax closure book).

Federal

State Municipal Social Security Tax on Income

IR (or IRPJ)CSLL Sales and Purchase

taxes on products IPI PIS / COFINS

Import

ICMS Tax on services

PIS / COFINS ICMS ISS INSS Funrural

Tax on property ITR IPVA

ITBI IPTU Others IOF

CIDE

Taxes Definition

IR (or IRPJ)Income tax

CSLL Income tax -Social Contribution Tax on Profits

IPI Tax on the manufacturing and import of goods

ICMS Tax on the movement of goods (including the import of

products, electricity, inter-municipal and interstate

transportation services and communication services)

PIS / COFINS Tax on revenues

Import tax Tax on import

ISS Tax on services

CIDE Tax on the import of services and the payment of royalties IOF Tax on credit, exchange, insurance transactions and

intercompany loans.

Legal Reporting –Tax books

Federal DIPJ DIRF DACON GFIP DCTF SPED DEREX BACEN State

Sintegra / Sintegra ST

GIA

GIA ST

CIAP

EFD

EFD PIS/COFINS

EFD CIAP

NFE

City

DES

GISS

DMS

NFE

Main Tax Accessory

Obligations

For 2010 Axis doesn′t have the obligations in red.

?SPED is an electronic instrument that unify the activities of receipt, validation, storage and authentication of the tax books.

?Due to the implementation of SPED, certain accounting and fiscal books in paper format are substituted by an electronic format.

?SPED regarding digital accounting bookkeeping will have to be delivered before June 30, 2009, with respect to transactions that occurred in 2008 for those entities that were notified. Other companies will deliver SPED in 2010 with regards to transactions having occurred in 2009.

?SPED regarding digital fiscal bookkeeping will be delivered from 2009 considering the transactions occurred in 2008. Each State will determine the date of delivery.

SPED –Sistema Público de Escritura??o Digital

Substitui??o Tributária was implemented by the Brazilian government with the objective to guarantee that the taxes generated in all phases of the supply chain are collected.

In other words, the big company became responsible for the payment of the small one that came after in the supply chain.

This is applicable to special situations. It depends on the type of the commercial transaction. There are 3 regimes, defined by the Tax Authority to calculate the ST:

-“Margem de valor agregado” (margin of aggregated value give by the government )-“Valor pauta” ( Std Value give by the government )

-“Pre?o sugerido ao consumidor” (price suggested to the consumer define by the industry sector)

(*) ICMS base considering that the commercial transaction occur in the same state

(**) rate defined by the Tax Authority based on the type of good

Substitui??o Tributária

Sales Invoice Customer

Sales

Invoice TOTAL Distributor Commercial

Transaction 1Commercial Transaction 2Invoice Value 2000.00ICMS base 2000.00ICMS value 360.00

ICMS ST 146.05

ICMS Total 506.05Invoice Value 2976.75ICMS base 2976.75ICMS value 506.05ICMS credit = 360.00

Invoice Value 2976.75ICMS base 0.00ICMS value 0.00This Commercial

Transaction is exempt of

Tax (ICMS)

Invoice Value 2000.00

ICMS base 2000.00

ICMS value 360.00Without ST -Distributor

With ST –Distributor State A

State B Without ST -Distributor With ST -Distributor Substitui??o Tributária (not Applicable for sales to distributor)

?In some situation we can pay one tax using a existing credit for another tax.

?The basic rule is that the tax credit and the tax payable must be of the same jurisdiction (Federal or State).

?The most common off set ,is between PIS/Cofins and IPI.

Off set rules / Compensation on special situation

Statute of Limitations

?All taxes are subject to the statute of limitations of 5 years (social security is 10 years).

?In practical terms if no tax assessment is issued then the liability will prescribe based on the statute of limitations

?Otherwise, if the Tax Authority find any issue during the assessment process, the tax year related to the this issue remains “opened”.

Tax Incentives

? A wide range of government incentives is available for startup projects in Brazil. ?Usually, incentives take the form of subsidized loan financing (BNDES) and tax exemptions or reductions.

?Brazilian tax incentives are subject to frequent revisions, then companies that are planning to analyze the incentive programs should, as a first step, obtain the latest available information.

?Accounting practices adopted in Brazil (“Brazilian GAAP”) are based on:?Law 6.404/76 -the basic conceptual framework is provided by the Conselho Federal de Contabilidade (CFC –Accounting Federal Council).

?Law 11.638/07 -the main objectives of this law is to approximate Brazilian GAAP to IFRS.

Financial statements required

? Balance sheets

?Statements of income

?Statements of cash-flows (introduced by Law 11.638/07)

?Statements of changes in retained earnings or accumulated losses

?Statements of added-value (introduced by Law 11.638/07)

?Footnotes

? Statements of changes in shareholders’ equity are required for publicly-held companies.

Record requirements

?Companies must record and maintain proper accounting books in Brazilian Portuguese and values must be recorded in Brazilian currency applying Brazilian GAAP.

?The basic accounting books for legal and tax purposes are the journal book (Diário) and general ledger book (Raz?o).

?The other auxiliary books are subsidiary to information contained in the journal and ledger.

Tax year

?The Tax year used in Brazil is from January to December.

Chart of Accounting

?The standard chart of accounting used by a company in France can be applied in Brazil.?Some adjustment needs to be implemented in order the company can follow the local requirements (example: creation of accounts to control each kind of tax)

Banking communication

Boleto

Company Customer

Duplicata File

Boleto

Bordero

Bank

Detail about the main Taxes in Brazil