WHAT IS THE BRAZILIAN IMPORT DUTY

The Brazilian Import Duty, Imposto de Importação in Portuguese, is a federal duty. It levies on imported goods and on travellers’ luggage from abroad. Also its purpose is to protect the domestic market from unfair competition.

This tax is paid when the goods enter Brazil. The calculation is based on the date of the Import Declaration.

For imported goods, the calculation basis is the custom value and the corresponding fixed tax, which is defined on the Common External Tariff. Furthermore this is a set of tariffs that establishes the import duties in the Mercosul countries. Hence, in the case of travellers’ luggage, the calculation basis is the value of the goods that exceed the exemption quota at a fixed rate.

 

THE EXAMPLE OF BRAZILIAN IMPORT DUTY

When importing to Brazil a Wallpaper Roll, costing R$ 250, the calculation should be:

Import Duty is Fixed tax x Custom value and it is 14% x R$ 250, hence it is R$ 35.00

 

WHAT IS THE TAX ON SERVICES OF ANY KIND

The Tax on Services of Any Kind, Imposto Sobre Serviço de Qualquer Natureza, abbreviated ISSQN in Portuguese. Also it is the responsibility of the cities. Tax is applied when the service is done and according the law that regulates it. Furthermore, It has a minimum rate of 2% and maximum of 5%. which are defined on each Brazilian city by a specific law. The calculation basis is the value of the service provided.

 

WHAT ARE PIS AND COFINS

The Social Integration Program, Programa de Integração Social is abbreviated PIS in Portuguese, and the Contribution for the Financing of Social Security, Contribuição para Financiamento Social is abbreviated COFINS in Portuguese. So, these are federal taxes charged on imported goods and services used for financing social programs.

The calculation equals the customs value of the goods and in case of importing services, the value of the Tax on Services (ISSQN) is also increased.

The tax rate is, almost always, 2.1% for PIS and 9.65% for COFINS, which may change slightly according to the law.

EXAMPLE

The value of PIS and COFINS to import a refrigerator with a customs value of R$ 500 would be as follows:
PIS = 2.1% x 500
PIS = R$ 10.50
Cofins = 9.65% x 500
Cofins = R$ 48.25

 

REFERENCES

1. http://www.portaltributario.com.br/tributos/iss.html
2. http://www.portaltributario.com.br/legislacao/lc116.htm
3. http://www.mdic.gov.br/images/REPOSITORIO/secex/deint/cgam/tec/TEC_2017/mar-tec2017-8-digitos.xlsx
4. https://idg.receita.fazenda.gov.br/acesso-rapido/tributos/imposto-importacao
5. http://www.mdic.gov.br/comercio-exterior/estatisticas-de-comercio-exterior-9/arquivos-atuais

 

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