Brazilian Taxes : what
you need to know
Brazil, with its
tremendous economic potential, is also a complex country where doing business
can prove complex. In 2012, Brazil is ranked by IMF in 126th place (from a
total of 183 countries) on ease of doing business. But if this assessment were
just on the complexity of its tax structures, the ranking would be certainly
worse! Brazilian taxes are amongst the world’s most complexes. There exist four principal
explanations for this :
- The fiscal organization is complex. The Federal State, the 26 Federated States, and thousands of Municipalities, all have strong powers of taxation.
- There exist countless exceptions and many contentious regulations (among other reasons, because States compete between each other to maximize budget income, as do Municipalities).
- Rules, methods of calculation, and above all tax rates are constantly changing! As an example, during the 1st semester of 2012, key tax rates for IPI, INSS, ICMS and IOF have been changed!
- The country’s tax codes reflect protectionist policies! Taxes on imports can be very high; in addition to this the calculation of these taxes is exceptionally complex.
Want to know more. Than
please visit: http://www.braziliantaxes.com/
