Living & Working in Brazil

With the Atlantic Ocean to the east, Brazil has a coastline of approximately 7,491 kilometers. The country borders all South American countries except Ecuador and Chile.

The Federal Republic of Brazil is politically and administratively divided into 27 federative units, comprising 26 states and one Federal District. These federative units are autonomous entities with their own governments, legislatures and taxation powers.

In each state, executive power is exercised by a governor elected every four years. Judicial power is exercised by trial and appellate courts that handle general legal matters.

Municipalities are territorial units with legal personality and a certain degree of administrative autonomy. They are the smallest autonomous units in the federation. Each municipality has its own fundamental law, which defines its political organization, subject to the Federal Constitution.

Brazil has 5,570 municipalities throughout its national territory. Some have populations larger than those of several countries, such as the city of São Paulo, which has an estimated population of 11,904,961 inhabitants. Others have fewer than 1,000 inhabitants.

The Federal District has characteristics common to both states and municipalities. Unlike states, it cannot be divided into municipalities. However, it may collect taxes as both a state and a municipality.

The current Brazilian taxation is governed by the Federal Constitution, which granted power to Federal, State and Municipal Governments to collect taxes.

Due to the several regulations enacted by each of these governmental instances, Brazilian taxation system is very complex, leading to an environment in which taxpayers are requested to comply with many obligations, both comprising tax collection and reporting.

Individuals living and working in Brazil face several taxes. The principal ones being taxes on earnings, consumption and certain financial transactions.

The intent of this guide is to explain in some detail how an employee´s compensation and personal income are subject to income and capital gains taxation as well as social charges, as applicable. In addition to direct taxes, Brazil has a complex indirect taxation system. 

Consumption taxes on goods and services account for a significant share of Brazil’s total tax revenue, historically representing a larger contribution than direct taxes on personal and corporate income. This structure is currently under a comprehensive tax reform through the implementation of Brazil's new dual VAT system (CBS and IBS). (The remaining components of tax revenue are employer social charges, payroll and property taxes). In contrast, the OECD average percentage of tax revenue for consumption and tax on income/profits is 33% and 33% respectively.

Brazil is the fifth-largest country in the world by land area and the largest country in South America. It is the only Portuguese-speaking nation in the Americas and the largest Portuguese speaking country in the world. Brazil is also recognized for its cultural diversity and multicultural heritage.

Brazil has one of the largest economies in the world and is the largest economy in Latin America. The country plays an important role in global trade and is a major producer and
exporter of agricultural commodities, minerals, and energy resources.

Brazil is home to remarkable biodiversity, extensive natural resources, and a wide variety of ecosystems, including the Amazon Rainforest, the Cerrado, the Atlantic Forest,
the Pantanal, and the Caatinga. These ecosystems support some of the richest
concentrations of wildlife on the planet.

Brazil is a member of several international and regional organizations, including the United Nations (UN), the World Trade Organization (WTO), the Southern Common Market (MERCOSUR), the Organization of American States (OAS), the Community of Portuguese Language Countries (CPLP), the Latin American Integration Association (LAIA/ALADI), the Amazon Cooperation Treaty Organization (ACTO), the Union of South American Nations (UNASUR), the BRICS group of emerging economies (BRICS), and the Group of Twenty (G20).

As one of the world's most resource-rich countries, Brazil possesses abundant renewable freshwater resources and is among the world's leading producers and exporters of commodities such as coffee, sugarcane, soybeans, beef, poultry, iron ore, and several agricultural products. The country also has significant oil, natural gas, and renewable energy resources, reinforcing its strategic importance in global markets.

In addition, Brazil ranks among the most populous countries in the world and benefits from a large domestic market, a diversified economy, and substantial natural wealth, which contribute to its position as one of the leading economies in the developing world.

All foreign nationals intending to work in Brazil must hold a valid passport and the appropriate residence authorization, depending on the specific circumstances of their assignment and intended activities in the country.

Visas application, when required, are generally submitted through the Brazilian Embassy or Consulate with jurisdiction over the applicant's place of residence. In certain cases, it is also possible to apply for a residence permit while in Brazil, allowing the individual to change their immigration status from visitor to resident worker, provided that all applicable legal requirements are met.

Foreign nationals are permitted to work in Brazil only if they hold the appropriate residence authorization. Most common types, among others:

• Residence Authorization with an employment contract with a local company;
• Residence Authorization without an employment contract with a local company, provided there is a specific Contract or Technical Assistance Agreement existing between a Brazilian and a foreign company;
• Residence Authorization based on Family Reunion;
• Residence Authorization based on Specific Agreements (Mercosur for instance)

It should be noted that holders of a business visa are not able to undertake any remunerated or administrative activities in Brazil. Business visitors are permitted to undertake business-related activities in Brazil, such as attending meetings, conferences and seminars, participating in commercial negotiations, meeting with clients and suppliers, conducting market research, exploring business opportunities, and carrying out specific technical, operational and maritime-related activities expressly allowed under Brazilian immigration regulations. Such activities must not result in remuneration from a Brazilian source, the provision of services beyond the scope permitted for visitors, or the establishment of an employment relationship in Brazil.

The residence authorization granted to accompanying dependents is linked to the principal applicant’s residence authorization and extends to legally recognized same sex partners. Should the principal applicant permanently depart from Brazil and terminate their residence authorization, his/her dependents will no longer qualify to maintain their dependent status.

Dependents who wish to remain in Brazil are required to obtain the appropriate residence authorization attending the applicable legal requirements. The residence authorization granted to accompanying dependents entitles them to reside, work and study. No employment restrictions are imposed on dependents.

There are a number of private and international schools in Brazil, largely concentrated in major cities such as Brasília, São Paulo and Rio de Janeiro.

Most international schools follow international curricula, particularly British or American curricula, while some cater to other nationalities, including French, German, Italian, Spanish and Portuguese communities. International schools may also offer the International Baccalaureate (IB) programme.

Many Brazilian families choose these schools because of their perceived higher standards of education and international learning environment.

Brazilian private schools generally follow the Brazilian national curriculum. Some have a religious foundation, while others offer bilingual instruction.

The standard working week in Brazil is generally limited to 44 hours, typically distributed over five or six working days. In many cases, this corresponds to an average of 220 working hours per month, depending on the applicable employment arrangement.

Retail opening hours may vary depending on the location and type of establishment. Stores are generally divided between street-front shops and those located in shopping malls.

• Stores located in shopping malls usually follow the mall’s operating hours, which are commonly from 10:00 a.m. to 10:00 p.m. from Monday to Saturday. On Sundays and public holidays, opening hours are often reduced and may vary by city, mall and local regulations.

• Street-front stores generally operate during standard business hours, typically from 8:00 a.m. to 6:00 p.m.

However, some establishments may remain open until 8:00 p.m. or later, particularly in commercial areas or during peak retail periods.

Purpose / Eligibility:

Tourism and business activities, such as technical and maritime activities expressly permitted by law, including meetings, negotiations, market research, inspections, audits, and other non-remunerated activities, provided they do not constitute local employment or involve remuneration from a Brazilian source.

Validity:

90 days*, renewable for an additional 90 days, subject to a maximum stay of 180 days within any 12-month period.

*Note: This rule does not apply to all nationalities. The visitor visa rules must be observed based on each nationality.

Purpose / Eligibility:

Applicable to qualified professionals to provide short term technical assistance and/or technology transfer services, whose employer (non-Brazilian company) has a contract, cooperation agreement or partnership with a Brazilian company.

Validity:

Up to 1 year renewable for same period.

Purpose / Eligibility:

Applicable to foreign nationals who intend to work in Brazil under a local employment contract. Residence authorization is subject to sponsorship by a Brazilian employer and compliance with the relevant requirements by both the employer and the employee.

Validity:

Up to 2 years, renewable for same period or converted into an indefinite residence.

Purpose / Eligibility:

Applicable to foreign citizens employed by a foreign entity who are assigned to a Brazilian branch, subsidiary, or other entity within the same economic group for professional training purposes. The objective is to enable the transfer of knowledge and the development of technical and operational skills through training and learning activities within the group’s companies.

Validity:

Up to 2 years non extendable.

Purpose / Eligibility:

Applicable to nationals of Mercosur member and associated countries seeking to reside andwork in Brazil under the Mercosur Residence Agreement.

Eligible nationalities: Argentina, Bolivia, Chile, Colombia, Ecuador, Paraguay, Peru and Uruguay.

Validity:

2 years, convertible into permanent residence.

Note: Argentina and Uruguay benefit from specific bilateral agreements with Brazil that allow initial permanent residence authorization.

Purpose / Eligibility:

Individuals that have a Brazilian child, marriage or Civil Union  with a Brazilian

citizen or holder of residence authorization (including same sex legally recognized partners), among other possibilities.

Validity:

Indefinite or according to the term of the principal applicant’s residence authorization.

Purpose / Eligibility:

Individuals who work remotely for a foreign company using technology platforms and tools, providedthat no work is performed to a Brazilian entity.

The activities may be performed by a visitor visa holder, observing the rules applied to the validity of the visitor visa. 

Validity:

Up to 1 year renewable for same period.

In Brazil "for rent" (“Aluga-se”) signs may be displayed on the property itself, either hanging from an apartment window or attached to the front gate of a house - the practice varies across the country. The rental property is usually managed by a real estate agency.

Furnished properties are not commonly available for rent. However, there are long stay hotels that offer an alternative choice that will also provide hotel type services.

A person applying for a rental property must have a guarantor or arrange for a bank guarantee to be provided.

The lease agreement or tenancy contract (Contrato de Locação de Imóvel) stipulates terms and conditions of rental and rental rates and is prepared by the real estate agency or owner. The landlord, guarantor and tenant must all sign the contract. Signatures on the contract are notarized (reconhecimento de firma) at the Local Notary’s Office (Cartório) where a copy of the relevant signatures have been filed. After the contract is signed by all parties, the realtor schedules an appointment at the apartment/house for inspection purposes and, finally, to give the keys to the tenant. The inspection serves as an important checking of the state of the property as the tenant is requited to return the property in the same state at departure.Lease agreements are prepared in Brazilian -Portuguese and it is recommended that those who are not able to understand the clauses consult an English-speaking property lawyer or seek a translation of the document through an independent translation company before signing.

This real estate property tax is an annual tax assessed on the ownership, title domain, or possession of urban real property. The tax, collected by the municipality where property is located, is calculated on a deemed "sales price" of the property, as determined by the relevant municipal legislation. The tax rate varies from city to city, and may also differ according to the property’s use, location and value.
Most municipalities issue the bill in January and allow a discount if paid by a certain date as well as allowing monthly payments. Most advertised rental properties in Brazil will have the IPTU monthly payment mentioned alongside the actual monthly rental payments.
IPTU payments can be made by the owner or the tenant. If the owner pays this tax, the rent charged to the tenant will be increased to cover it.

The tenant is also responsible for paying condominium charges if they rent in an apartment block with communal areas. The amount is listed separately from the monthly rental amount. The tenant will typically receive a separate monthly bill which should be paid to the condominium management company.

Landlords may request that tenants obtain house insurance covering damages by theft, fire, flooding and similar problems. It must be agreed in advance by the parties. Insurance can also be a good option for the tenant to purchase as most insurance companies provide maintenance services for appliances, plumbing, electricity and so forth.

The landlord must rent the property with its fixtures functioning correctly. If the tenant discovers that this is not the case once services have been connected, it is up to the landlord to undertake any necessary repairs.It is also generally the landlord's responsibility to pay for structural repairs, external painting of the building, fire and security equipment and any other extraordinary maintenance/condominium expenses.

Rental increases are determined by current legislation applying a federally determined increase.

A contract term is usually 30 months and it can be terminated or extended at its expiration. If neither the owner nor the tenant have given notice for the contract to end when the lease expires then a tacit agreement is made for it to continue.

Formal renewal is carried out, usually for a further 12 or 30 months. To take the property back at the end of the lease term, the landlord must give the tenant three months prior notice. The tenant may give 30 days prior notice to the owner at any time, but will forfeit one month’s rent and charges as compensation to the owner. If the tenant’s employer transfers him/her to another place of work the tenant must still give 30 days prior written notice to the owner but will not have to pay the charges. There must be proof of the transfer (provided by the tenant’s employer). Notice must be given in writing. There is no requirement by law for the letter to be sent to the landlord by recorded delivery, but it is recommended.

Foreign nationals holding a valid driver's license issued abroad may drive in Brazil for up to 180 days from their date of entry, provided their license is recognized in Brazil under applicable international conventions, agreements, or reciprocity arrangements. After 180 days of regular stay, individuals wishing to continue driving in Brazil must apply for a Brazilian driver's license or complete the applicable license recognition process.

Important information: This rule applies to all countries that are members of the Vienna Convention, as well as to countries with which Brazil has reciprocity agreements, including the United States and Canada. A complete list is available on the following website: https://www.detran.pr.gov.br/Pagina/PAISES-SIGNATARIOS.

Foreign nationals holding driver licenses from countries that are not members of any international convention, agreement or arrengements may only drive in Brazil after applying for a Brazilian driver’s license through the competent DETRAN office. Depending on the circumstances, applicants may be required to undergo physical and mental fitness examinations, psychological assessment, and a practical driving test in accordance with the relevant driver's license category.

Private motor vehicle insurance is optional in Brazil. Many drivers choose to purchase third-party liability coverage and/or comprehensive insurance, which may cover collision, theft, vandalism, and other risks, depending on the policy. Passenger accident coverage may also be available as an optional benefit.

You and your dependents are required to register the visa and request the Brazilian ID. The application must be submitted in person at the Federal Police.

You will initially receive a registration protocol, while the Registration card (CRNM) is issued - generally within 180 days. The registration protocol, and subsequently the CRNM/RNM card, serves as the applicant’s primary proof of immigration status in Brazil and is required for obtaining various documents and services. If you apply for the residence authorization request directly in Brazil, you will have 30 days after the publishment of approval to register the application at Brazilian Federal Police.

The CPF (Brazilian taxpayer identification number) is issued by the Federal Revenue Service (Receita Federal) and is required for numerous activities in Brazil, such as opening bank accounts, leasing property, signing contracts, and accessing various services.

Each family member, including dependents, is generally encouraged to obtain an individual CPF, as it may be required for tax, banking, healthcare, education, and other administrative purposes in Brazil. Dependents claimed for Brazilian tax purposes must have their own CPF.

The Work and Social Security Card (CTPS) is the document that records the worker's professional life and guarantees access to labor rights provided by law. The Work Booklet will be issued in digital format and exceptionally in physical format.

The rights and duties of employers and employees in Brazil are set out in the so-called “Consolidation of Brazilian Labor Laws – CLT”, the main statute that regulates labor rights in Brazil, issued in 1943.

Labor rights are also regulated by collective bargaining and collective agreements. Following are the rights that the employee receives from the company.

The normal working hours in industry are eight hours per day and forty-four hours per week. Employees are eligible for one day off per week (normally on Sunday). Employees may be required to work a maximum of two overtime hours per day with premium pay of at least 50%, plus an additional 20% premium for hours worked on night shifts. Overtime of more than two hours is permissible in an emergency, provided that a special agreement is registered with the Ministry of Labor and Social Security.

Employees are entitled to paid leave on national, state, municipal and religious holidays, as applicable under Brazilian law. They are also eligible for three days' paid leave upon marriage, two days' paid leave for a period of mourning, and fifteen days' paid leave (annually) for illness. Paternity leave (Licença Paternidade) is paid for five days and maternity leave is paid for 120 days.

For every 12 months of service provided to the company, the employee receives 30 days of paid vacation.

After full-time employment of one year, an employee is entitled to 30 days per year of vacation, plus one-third of his or her monthly salary as a vacation bonus; the employee may receive cash in lieu of vacation for up to ten days. Employers may grant collective vacation for convenience.

For each 12 months of a calendar year that the employee works for a company, he/she is eligible to receive an additional one-month salary, usually paid one half in November and December of each year.

An employer is required to make a contribution of 8.0% of the employee's remuneration each month to a "blocked" bank account; the accumulated deposits may generally be drawn upon for retirement, purchase of real estate property or upon dismissal from the company without just cause; if the latter occurs, the employer is also required to pay a "fine" to the dismissed employee equivalent to 40% of the accumulated funds.

Fifteen days’ paid leave (annually) for illness upon presentation of medical certificate. If the employee needs to be away for more than 15 days due to an illness or surgery, his/her salary from the 16th day, shall be paid by the INSS (Social Security). The employee is only eligible for INSS benefit if he/she has been contributing for more than one year.

Employment contracts in Brazil are subject to a trial period, which may vary depending on the employment contract. Once the trial period has passed, the employment contract may be cancelled if proper notice is given as follows:

• Up to one year of service: one month’s notice (at the end of a month).

• As of the second year of service and up to the completion of the ninth year of service: two months’ notice (at the end of a month).

• As of the tenth year of service and later: three months’ notice (at the end of the month).

Please note that your company policy might stipulate a different notice period, but it may not be less than one month.
Termination of the employment contract should be communicated via registered mail by either party. A letter notifying the intention to end the contract must reach the employer or the employee by the last working day of the month for the notice to be effective for that month.
The notice period begins after the receipt of this letter and the salary continues to be paid during the notice period according to the employment contract. The final salary payment should include a prorated 13th monthly salary (if a 13th month salary payment is part of the employment contract) and any residual vacation balance should be taken during the notice period or paid in full.

On a related note, the employment contract will automatically terminate on the last working day of the month that the employee reaches retirement age, unless a separate agreement is made between the employer and employee.

Brazil has an institute responsible for paying retirements, pensions due to death, illness, disability, aids, others benefits foreseen by law. Private pension plans, however, are optional.

INSS is responsible for collecting contributions to maintain the Brazilian Social Security regime operating: paying retirements, pensions due to death, illness, disability, aids, others benefits foreseen by law.

Both employers and employees pay social security contributions. These contributions are used to fund government pensions paid to retired citizens. Individuals who receive compensation from a Brazilian source are subject to the local social security tax, which is withheld by the employer or the source of income.

Contribution rates range from 7,5 percent to 14 percent, depending on the amount of the compensation. There is a cap to the individual contribution, which represents a percent applied upon the maximum contribution income (R$ 8,475.55  per month) as of 2026 , thus resulting in a maximum R$ 988.09  of contribution for the employee.

The employer contribution generally ranges from 26.8 percent to 28.8 percent (20 percent are allocated to the National Social Security Institute, or INSS, and up to 8.8 percent to other social security taxes), depending on the type of activity, calculated on each employee's monthly salary. There is no cap to the employer's contribution.

Private pension plans are optional in Brazil. An individual is able to subscribe directly within an authorized financial institution or via an employer-sponsored plan. There are two types of private pension plans that an individual can join.

PGBL – PLANO GERADOR DE BENEFÍCIO LIVRE.

• These plans are administrated by complementary pension institutions and complement national insurance.

• The payments made to the plan are deductible but conditioned to the payment of the official social security. Tax relief is limited to limited to 12% of the total taxable income reported in the annual income tax return.

• Payments made on behalf of dependents are also deductible as long the main taxpayer contributes to the official social security.

VGBL – VIDA GERADOR DE BENEFÍCIO LIVRE. 

• A VGBL plan is characterized as life insurance “com cláusula de cobertura por sobrevivência” The payments made to this kind of plan are not deductible.

Brazil has an extensive network of tax treaties designed to minimize any double tax exposure resulting from an international assignment.

The tax treaties cover the double taxation of income and the application of the tax treaties and the interpretation of the rules can be quite complex. As a result, we recommend you contact your tax adviser before making any decisions based upon applying the treaty rules.

List of Income Tax Treaties:

Countries with an Income Tax Treaty

• Argentina
• Austria
• Belgium
• Canada
• Chile
• China
• Czech Republic
• Denmark
• Ecuador
• Finland
• France
• Hungary
• India
• Israel
• Italy
• Japan
• Luxembourg
• Mexico
• Netherlands
• Norway
• Peru
• Philippines
• Portugal
• Russia
• Slovakia
• South Africa
• South Korea
• Spain
• Sweden
• Switzerland
• Trinidad and Tobago
• Turkey
• UAE
• Ukraine
• Venezuela

1. The Tax Treaty to avoid double-taxation entered with Colombia, Iceland, Paraguay, Poland and United Kingdom have not yet been approved by the Brazilian National Congress (so, not in force).

2. USA, United Kingdom and Germany have tax treatment reciprocity, it means that a tax paid in one country might be offset against the income tax due in the other country, or vice-versa, if conditions are met.

Copies of the text of the tax treaties can be found on the Federal Tax Administration’s website.

Employment income received in Brazil and income received by non-employees, such as statutory directors, are subject to the social security (INSS) personal contribution. The contributions to the Brazilian social security must be monthly withheld from the local compensation by the local paying source.

The rates regarding the individual social security contribution ranges from 7,5% to 14%, with a monthly ceiling cap updated by the Brazilian government each year. The tax basis is the contribution salary.

However, in case Brazil had entered into an International Social Security Treaty with the original country of the taxpayer, the rules set forth in the Treaty can be observed, and that can result in the payment of the social security contribution in only one country or in the commutation of the benefits covered by the Treaty.

Note: The Social Security Totalization Agreements entered with Bulgaria, India, Israel, Mozambique and Czech Republic have not yet been approved by the Brazilian National Congress (so, not in force).

Brazil entered into Social Security Totalization Agreements with the following countries:

Bilateral Agreements

• Austria
• Belgium
• Canada
• Cape Verde
• Chile
• Czech Republic
• France
• Germany
• Greece
• India
• Italy
• Japan
• Luxembourg
• Mozambique
• Portugal
• Quebec
• South Korea
• Spain
• Switzerland
• United States of America

Note: The Social Security Totalization Agreements entered with Bulgaria, India, Israel, Mozambique and Czech Republic have not yet been approved by the Brazilian National Congress (so, not in force).

Brazil entered into Social Security Totalization Agreements with the following countries:

Multilateral Agreements - Iberoamerican

• Argentina
• Bolivia
• Chile
• Ecuador
• El Salvador
• Paraguay
• Peru
• Portugal
• Spain
• Uruguay

Multilateral Agreements - Mercosul

• Argentina
• Paraguay
• Uruguay

Note: The Social Security Totalization Agreements entered with Bulgaria, India, Israel, Mozambique and Czech Republic have not yet been approved by the Brazilian National Congress (so, not in force).

PIS and COFINS are federal taxes imposed monthly on gross revenue earned by legal entities. PIS is a mandatory employer contribution to an employee savings initiative and COFINS is a contribution to finance the social security system. The calculation method is generally non-cumulative, under which PIS and COFINS are levied on gross revenue at 1.65% and 7.6%, respectively, with deductions of input tax credits for expenses strictly connected to the company's business and prescribed by the regulating laws.

Other calculation methods and special schemes may apply to certain industries and type of revenue. If a company is paying corporate income tax based on a deemed taxable income regime, i.e. under the Lucro Presumido system, the rates are reduced to 0.65% and 3.0%, respectively, and the company is not entitled to input tax credits (cumulative taxation).

PIS and COFINS are also due on importations of goods and services from abroad (i.e. PIS-Import and COFINS-Import). The applicable rates are also 1.65% and 7.6%, and the amount paid is usually recoverable as input tax credits if the taxpayer assesses PIS and COFINS under the regular non-cumulative regime to the extent certain conditions are met. The export of goods and services are exempt provided funds effectively enter the country.

The IPI is a federal excise tax levied on manufacturer's sales and imports and sales carried out by importers. As a VAT-type tax, the amount paid on imports and other taxed inputs are usually recoverable as tax credits to be offset against company's IPI output debits. The tax rates range from 0% to 330% depending on the type of goods.

ICMS is a VAT levied by the Brazilian states on the circulation of goods and the provision of interstate and inter-municipal transportation and communications services. The tax applies even when a transaction and the provision of services commence in another country. A non-cumulative tax, ICMS is collected by most states at the rate of 17% to 18%. There are also interstate rates of 12%, 7% and 4%, depending on the location of the recipient and nature of the transaction.

While there is no sales tax per se in Brazil, every manufacturer, distributor, retailer or provider of almost every type of merchandise or service pays the state ICMS and passes the cost along to the consumer. While there are some exemptions (mainly pertaining to goods bound for exportation, raw minerals and interstate transmission of electricity and fuels), the only exemption that really impacts consumers is an exemption on newspapers, magazines and books.

The tax on services or ISS, a municipal tax, is imposed on the supply of services, other than services subject to ICMS. The list of relevant services is found in Complementary Law.

The taxable base of ISS is the price of the service rendered. ISS is generally levied by the municipality in which the company that provides the service is established, although in exceptional cases, ISS may be levied by the municipality where the services are performed. ISS rates vary between 2% and
5%, depending on the municipality and the type of service. The importation of
services is also subject to ISS, whilst exportations may be exempt if the result of the supply is exclusively found abroad. As a cumulative tax, ISS is not recoverable, i.e. no input tax credits are available stamp.

The financial transactions tax (IOF) is imposed on foreign exchange, credit/loan, and security transactions. The general rate for most foreign exchange transactions is 3.5%. A maximum rate of 3.38% (calculated using specific methods and conditions) applies on the principal amount of domestic loans (where the lender is a legal entity). For security transactions, the rates depend on the type of transaction (ranging from 0% to a maximum daily rate of 1.5%). 

All registered motor vehicles are subject to this yearly tax. The exact rate is highly variable depending upon the make, age and current market value of the vehicle. The IPVA
tax on most average- to lower-priced newer cars will run well over R$ 1,000.00.
Most states mail the bill in January and allow a discount if paid by a certain date as well as allowing monthly payments over the year.

Brazil is currently implementing the necessary legal measures for an overall VAT reform as from 2026. Under the reform, a dual VAT
is being implemented, with a transition period of seven years, and comprises a
federal VAT (CBS) (which replaces PIS/COFINS) and a state and municipal VAT
(IBS) (which replaces ICMS and ISS), as well as a new federal selective tax
(IS). The CBS and IBS are being tested nationwide in 2026 and generally not
effectively collected, but companies must show the calculated amounts on invoices using test rates. The standard 2026 test rates are 0.9% (CBS) and 0.1% (IBS).