Comprehensive Guide to Corporate Tax in Brazil

By EasyCo Updated October 10, 2026

Brazil is one of the largest economies in the world, and it’s an attractive destination for foreign investment. However, navigating the country’s tax laws can be challenging, especially when it comes to corporate tax. In this article, we’ll provide a comprehensive guide to corporate tax in Brazil, including the benefits, incentives, and deductions available to businesses in the country.

What is Corporate Tax?

Corporate tax is levied on the profits of companies operating in Brazil. The corporate income tax (IRPJ) rate is 15%, plus a 10% surtax on annual taxable profit above R$240,000. Companies also pay the social contribution on net profit (CSLL), 9% for most companies, so the combined rate is about 34%. On top of that come taxes on revenue (PIS, Cofins, ICMS and ISS) and payroll contributions.

Choosing a Tax Regime: Lucro Real, Lucro Presumido or Simples

Each year the company chooses how its taxable profit is calculated. Lucro real (actual profit) is mandatory above R$78 million of annual revenue and for some activities, such as banks. Lucro presumido (presumed profit) applies the tax rates to a presumed margin of revenue, for example 8% for trade and 32% for most services. Since 2026, that margin is 10% higher on revenue above R$5 million a year (Lei Complementar 224/2025). Simples Nacional, a unified regime for revenue up to R$4.8 million, is not available to companies with a partner domiciled abroad or a corporate partner, so it rarely applies to foreign-owned companies.

Incentives for Businesses in Brazil

Brazil offers a range of incentives to businesses operating in the country. These incentives are designed to encourage investment, job creation, and economic growth. Some of the most popular incentives include:

Tax Incentives: Brazil offers tax incentives to businesses that invest in certain industries or regions. For example, companies that invest in the North or Northeast regions of the country can receive tax breaks.
Export Incentives: Brazil has several export incentives that help companies to increase their exports. These incentives include tax exemptions and reductions, financing, and technical support.
Innovation Incentives: Brazil offers incentives for companies that invest in research and development. These incentives include tax breaks, grants, and subsidies.

Deductions for Companies in Brazil

In addition to incentives, companies in Brazil can also benefit from deductions on their corporate tax. Some of the most common deductions include:

Depreciation: Companies can deduct the cost of assets that depreciate over time, such as equipment and buildings.
Charitable Contributions: Companies can deduct charitable contributions made to qualified organizations.
Interest Payments: Companies can deduct interest payments on loans and other financial instruments.

Industries with the Most Benefits

Certain industries in Brazil are particularly well-suited to take advantage of the benefits and incentives available to businesses. Some of the industries that are most likely to benefit include:

Agriculture: Brazil is one of the largest agricultural producers in the world, and companies in this industry can benefit from tax breaks and subsidies.
Technology: Brazil has a growing technology sector, and companies in this industry can benefit from innovation incentives.
Energy: Brazil is a leader in renewable energy, and companies in the energy sector can benefit from tax incentives and subsidies.

Corporate tax in Brazil can be complex, but it’s an essential part of doing business in the country. By understanding the benefits, incentives, and deductions available, companies can make the most of their investments in Brazil. With the right knowledge and strategy, businesses in Brazil can thrive and contribute to the country’s economic growth.

Dividends and the 2026 tax reform

Dividends: since January 2026, dividends paid to shareholders abroad are subject to 10% withholding tax, and dividends above R$50,000 a month paid to an individual resident in Brazil are subject to 10% withholding (Lei 15.270/2025). Profits for 2025 and earlier whose distribution was approved by 31 December 2025 are exempt.

Consumption-tax reform: Brazil is replacing PIS, Cofins, ICMS and ISS with a dual VAT, the federal CBS and the state and municipal IBS (Constitutional Amendment 132/2023 and Lei Complementar 214/2025). 2026 is a test year: invoices show CBS at 0.9% and IBS at 0.1%, but companies that meet the new reporting obligations don’t pay them. In 2027, CBS replaces PIS and Cofins. IBS is phased in from 2029 and fully replaces ICMS and ISS in 2033.

Opening a company in Brazil: the main steps

Choose the company type (usually a Ltda.)
Get a CPF or CNPJ for each foreign partner
Appoint the administrators and a representative in Brazil
Apostille and translate the documents
Run the viability check for the name, activities and address
Sign the articles of association
File with the Junta Comercial and receive the NIRE and CNPJ
Complete the tax registrations and choose the tax regime
Report the investment to the Banco Central and open a bank account

Full guide: how to open a company in Brazil.

Get help from Easyco

Easyco coordinates the company setup in Brazil up to the issue of the CNPJ, and supports companies afterwards with tax, accounting, payroll and company compliance, including a registered office address. Contact us to discuss your project.