Brazil Tax Law

In 2019, Brazil ranked 18th among the top 20 countries/regions for Chinese outbound investment. The Brazilian economy has a strong complementary relationship with China, providing essential raw materials such as agricultural products, oil and gas, and minerals. Additionally, as one of the world's largest economies, Brazil boasts significant domestic demand and serves as a key market for Chinese exports.

By chance, we delved into Brazil's corporate tax system and were deeply impressed by its complexity. Besides being intricate, Brazil’s tax regime is characterized by high tax burdens and unique features. Brazil's tax system has long been criticized by foreign investors, which is one of the main reasons why the Brazilian tax authority has been actively pursuing tax reforms in recent years. Since these reforms are being gradually implemented, this article does not account for post-publication changes.

While our tax articles on other countries and regions typically focus on personal income tax, Brazil is not a popular immigration destination. Therefore, this article will focus solely on corporate taxes in Brazil.