Brazil's headline corporate income tax (CIT) rate is 34 (IRPJ 25% + CSLL 9%).
The headline personal income tax (PIT) rate is 27.5.
The standard VAT/GST (or equivalent consumption tax) rate is combined federal/state VATs, typically 17-20% state ICMS plus federal PIS/COFINS. Registration thresholds, zero-rated and exempt categories, and reduced rates vary by jurisdiction - see the source link below for the full detail on this jurisdiction.
An individual becomes a Brazilian tax resident on the 184th day of presence within any rolling 12-month period (i.e., after exceeding 183 days, consecutive or not), or immediately upon entering with a permanent visa, or upon return as a Brazilian citizen with intent to resettle permanently. Residents are taxed on worldwide income; non-residents only on Brazil-source income.
Brazil operates one of the strictest CFC regimes globally. A Brazilian resident (individual or company) that directly or indirectly controls a foreign entity - generally more than 50% of voting capital, or the power to elect a majority of directors - must include the foreign entity's profits in Brazilian taxable income annually as of December 31, regardless of whether any distribution occurs. Law 14.754/2023 eliminated the prior ability to defer this tax until an actual distribution; individuals are taxed at a flat 15% rate on these deemed profits. Control is aggregated across related Brazilian residents (spouses, family members, business partners), and active operating entities with genuine substance abroad may qualify for more favorable treatment than passive holding structures.
Under Normative Instruction RFB No. 1,154/2011, interest on related-party debt is deductible only up to a 2:1 debt-to-equity ratio calculated relative to the foreign related party's participation in the Brazilian borrower (or twice total equity where the related party holds no equity stake). Where the lender is resident in a low-tax or privileged-regime jurisdiction, the permitted ratio drops sharply to 0.3:1. Interest attributable to debt exceeding the applicable ratio is non-deductible.
Brazil maintains double tax treaties with approximately 36 countries per PwC, including most of Europe, Canada, Japan, China, India, and several Latin American neighbors - notably, Brazil has no comprehensive income tax treaty with the United States (though the two countries recognize limited reciprocal tax-credit treatment). Brazil uses its own model convention that diverges from the OECD model in several respects, including broader source-country taxing rights, and its treaties commonly treat technical service fees as royalties rather than business profits.