Taxation In Brazil - An Overview*

I - INTRODUCTION

Brazil's Federal Constitution of 1988 established a new Taxation System. Such a system allows for each political body at federal, state and municipal levels to generate their own tax revenue. The system is a very complex one and includes at least fifty different types of taxes.

Below is a brief description of each tax. For comprehension purposes we have divided the existing taxes into five different areas : Taxes on Importation, Taxes on Domestic Operations, Corporate Taxes, Individual Taxes, and Other Taxes. We have also included a chart summarizing the total tax burden for legal entities in Brazil.

II. IMPORTATION OPERATIONS

Importation operations are subject to the following taxes: