Tax and compliance for businesses in Brazil, an overview

Snapshot

A business in Brazil is identified by its CNPJ, may also hold a state registration for ICMS and a municipal registration for ISS, and pays tax under one of three regimes: the Simples Nacional, the Lucro Presumido, or the Lucro Real. Your bank account, known as a conta PJ, sits underneath all of this as the record of money in and out, so clean separation of company and personal money makes compliance easier.

Federal identifier: CNPJ, the company taxpayer number, plus a CPF for the owners and legal representative. As of 16 February 2026.
Main tax regimes: Simples Nacional, Lucro Presumido, and Lucro Real. As of 16 February 2026.
Corporate tax: IRPJ of 15 percent plus a 10 percent surtax above 240,000 reais a year, and CSLL of 9 percent. As of 16 February 2026.
Filing: Electronic, through federal, state and municipal systems, usually with an accountant

Fees and features as of 16 February 2026Last reviewed 16 February 2026

General information, not financial, legal, or tax advice. Verify current terms and eligibility with the provider before applying.

A Brazilian business is identified by its CNPJ, the federal company taxpayer number, and often by a state registration for ICMS and a municipal registration for ISS. Tax is paid under one of three regimes: the Simples Nacional, a simplified single payment for smaller companies, the Lucro Presumido, based on a presumed margin, or the Lucro Real, based on actual profit. Companies outside the Simples Nacional generally pay corporate income tax, the IRPJ, plus the social contribution on profit, the CSLL. A consumption tax reform began a transition in 2026. None of this is tax advice, and the rules vary by activity and ownership, so confirm your own position with an accountant. Figures here are as of 16 February 2026.

How business tax and compliance fit together in Brazil

When a company is registered in Brazil it receives a CNPJ, the federal taxpayer number that identifies the business on invoices and official documents. Depending on its activity it may also need a state registration, the Inscricao Estadual, for the goods tax ICMS, and a municipal registration, the Inscricao Municipal, for the service tax ISS. Compliance then runs through electronic invoicing, periodic filings, and tax under the regime the company elects. As of 16 February 2026.

The three tax regimes

The Simples Nacional is a simplified regime for smaller companies with annual gross revenue up to about 4.8 million Brazilian reais, consolidating several federal, state and municipal taxes into a single monthly payment. It often does not apply to companies with foreign shareholders. The Lucro Presumido taxes a presumed margin of revenue, while the Lucro Real taxes actual profit and is required above certain revenue levels or for some activities. The right regime depends on margins, revenue and activity, so confirm your position with an accountant. As of 16 February 2026.

Corporate tax and contributions

Companies outside the Simples Nacional generally pay corporate income tax, the IRPJ, at a basic rate of 15 percent plus a 10 percent surtax on annual profit above 240,000 Brazilian reais, together with the social contribution on profit, the CSLL, at 9 percent for most companies. The combined headline rate is often described as around 34 percent. Federal contributions on revenue, PIS and COFINS, also apply outside the Simples Nacional. Confirm the rates and method that apply to your business with an accountant. As of 16 February 2026.

Indirect taxes and the 2026 reform

ICMS is a state tax on goods and some services, with rates that vary by state and often sit in the high teens, while ISS is a municipal tax on services, commonly between 2 and 5 percent depending on the city. A wide consumption tax reform began a transition on 1 January 2026 that introduces a dual value added tax, the federal CBS and the state and municipal IBS, to replace PIS, COFINS, ICMS, ISS and IPI over a phase in that runs for several years. During the transition both systems run in parallel, so invoicing and reporting need to reflect the new fields. Confirm what applies to your activity with an accountant. As of 16 February 2026.

What to keep in order

These items keep Brazilian business compliance manageable, as of 16 February 2026. Verify with the authority or your accountant

Your CNPJ on invoices and records, plus any state registration for ICMS and municipal registration for ISS that your activity requires.
A bank account in the company name, a conta PJ, that keeps company money separate from personal money for clean bookkeeping.
A filing calendar for your tax regime and for electronic invoicing, including the new CBS and IBS fields introduced during the 2026 transition, handled with an accountant.

How to approach compliance

Confirm your CNPJ and whether your activity needs a state registration for ICMS or a municipal registration for ISS.
Choose a tax regime with an accountant, the Simples Nacional, the Lucro Presumido, or the Lucro Real, based on your revenue, margins and activity.
Set up a conta PJ and bookkeeping that separate company money, capture every transaction, and meet the electronic invoicing and filing calendar.

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Questions about tax and compliance in Brazil

What is a CNPJ in Brazil?

The CNPJ, Cadastro Nacional da Pessoa Juridica, is the federal taxpayer registry number that identifies a registered company in Brazil. It appears on invoices and official documents and is required to open a business account, known as a conta PJ. Many businesses also hold a state registration for ICMS and a municipal registration for ISS. As of 16 February 2026. Verify with the authority or your accountant.

What is the Simples Nacional regime?

The Simples Nacional is a simplified tax regime for smaller companies with annual gross revenue up to about 4.8 million Brazilian reais. It consolidates several federal, state and municipal taxes into a single monthly payment. Eligibility depends on the activity and ownership, and companies with foreign shareholders are often excluded. Confirm your eligibility with an accountant. As of 16 February 2026.

What is the corporate tax rate in Brazil?

Companies outside the Simples Nacional generally pay corporate income tax, the IRPJ, at a basic rate of 15 percent plus a 10 percent surtax on annual profit above 240,000 Brazilian reais, together with the social contribution on profit, the CSLL, at 9 percent for most companies. The combined headline rate is often described as around 34 percent. Confirm the rates and method that apply to your business with an accountant. As of 16 February 2026.

What are ICMS and ISS in Brazil?

ICMS is a state tax on goods and some services, with rates that vary by state, often in the high teens. ISS is a municipal tax on services, with rates set by each city, commonly between 2 and 5 percent. A consumption tax reform began a transition in 2026 that will replace several of these taxes over time. Confirm the taxes and rates for your activity with an accountant. As of 16 February 2026.

Fees, features, and eligibility change and vary by region. This page was last reviewed on 16 February 2026. Confirm current terms with the provider before applying.

Tax and compliance in Brazil