Taxes in Practice: how to choose the best tax regime for your company

Did you know that choosing the tax regime can change the financial health of your company?

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Optimizing your tax payments starts with this decision.

Whether it is a Microenterprise (ME) or a Small Business (EPP), understanding the regimes is essential for tax planning.

How do you know which tax regime is best for your company?

And how to maximize the tax efficiency?

The regimes Simples Nacional, Presumed Profit e Real Profit have their advantages.

Let’s explore each one to find the best option for your business.

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Main points

  • Fundamental understanding of tax regimes: Simples Nacional, Presumed Profit e Real Profit.
  • Simples Nacional It is ideal for revenues up to R$4.8 million per year with variable rates between R$4% and R$22.90%.
  • Presumed Profit can be chosen for revenues up to R$78 million per year, with rates from R$8% to R$32% depending on the type of activity.
  • Real Profit favors companies with profit margins lower than 32% or with revenue above R$ 78 million.
  • O corporate tax planning is vital for financial health and to avoid losses.
  • Consult an accountant to ensure compliance and suitability with the chosen tax regime.

The importance of choosing the correct tax regime

Choosing the right tax regime is crucial for corporate financial health.

This directly affects the company's profitability and investment.

Choosing the right regime helps you avoid paying too much tax and reduce tax risks.

To choose, consider the company's revenue, type of business and profitability.

For example, Simples Nacional is for micro and small companies with up to R$1.8 million in revenue.

It combines several taxes into a single tab, the DAS.

DAS rates change according to the activity and revenue, bringing savings on taxes for small businesses.

melhor regime tributário para sua empresa

The Presumed Profit is for companies with up to R$1,407,8 million in revenue.

In this regime, taxes are levied on a portion of revenue, with fixed percentages.

Real Profit is more complex, using net profit to calculate taxes.

Companies under this regime may be exempt from taxes if they have losses during the year.

A importance of the tax regime correct goes beyond the tax burden.

Avoid fines and financial problems from a wrong regime.

Effective tax planning helps you find the best regime for your company.

Comparing the regimes:

RegimeAnnual RevenueAliquotsFeatures
Simples NacionalUp to R$1.8 millionVariables according to activity and revenueUnification of taxes, less bureaucracy
Presumed ProfitUp to R$1,400,000 millionPercentage of revenueLess complexity, quarterly or monthly payment
Real ProfitNo defined limitBased on accounting net profitGreater complexity, deductions and additions permitted by law

Aligning operations with the correct tax regime brings savings and success to the company.

This ensures sustainability in the market.

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Overview of the main tax regimes in Brazil

There are three main tax regimes in Brazil: Simples Nacional, Presumed Profit and Real Profit.

They range from simplicity for small businesses to complexity for large corporations.

This directly affects how much companies pay in taxes.

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O Simples Nacional It was created in 2007. It is for companies with an annual turnover of up to R$4.8 million.

It makes paying taxes easier with a single tab, reducing bureaucracy and accounting costs.

Tax rates vary from 4% to 22.90%, depending on the company's activity.

O Presumed Profit is for companies with revenue between R$4 million and R$78 million.

Allows you to calculate taxes based on a predefined profit margin.

The rates vary from 1.6% to 32%, being more advantageous for companies with high profits.

O Real Profit is for companies with revenues above R$78 million.

Taxation is on real profit, minus costs and expenses.

The rates include 15% of IRPJ and 9 to 12% of CSLL, being ideal for companies with profits of less than 32% or that present losses.

Tax RegimeAnnual RevenueAliquotsAdvantages
Simples NacionalUp to R$ 4.8 million4% to 22.90%Tax simplification and less bureaucracy
Presumed ProfitR$ 4 million to R$ 78 million1.6% to 32%Lower tax burden for high profits
Real ProfitAbove R$ 78 million15% IRPJ, 9% to 12% CSLLLoss compensation and calculation of real profit

Best tax regime for your company: Features of Simples Nacional

Simples Nacional is a tax regime for microenterprises e small businesses.

It reduces the tax burden and facilitates tax management. It is ideal for businesses with annual revenue of up to R$4.8 million.

Microenterprises with a turnover of up to R$ 360,000 and small businesses with revenues between R$360,000 and R$4.8 million benefit greatly.

Companies with revenues above R$3.6 million are considered normal for ISS and ICMS.

Melhor regime tributário para sua empresa

Simples Nacional classifies companies by economic activity in specific annexes. Each annex has its own tax rates.

Table:

AnnexGross Revenue Range (R$)Tax rate (%)
I (Commerce)Up to R$ 180,0004%
I (Commerce)R$ 180,000.01 to R$ 360,0007.3%
I (Commerce)R$ 360,000.01 to R$ 720,0009.5%
I (Commerce)R$ 720,000.01 to R$ 1,800,00010.7%
I (Commerce)R$ 1,800,000.01 to R$ 3,600,00014.3%
I (Commerce)R$ 3,600,000.01 to R$ 4,800,00019%
II (Industries)Up to R$ 180,0004.5%
II (Industries)R$ 180,000.01 to R$ 360,0007.8%
II (Industries)R$ 360,000.01 to R$ 720,00010%
II (Industries)R$ 720,000.01 to R$ 1,800,00011.2%
II (Industries)R$ 1,800,000.01 to R$ 3,600,00014.7%
II (Industries)R$ 3,600,000.01 to R$ 4,800,00030%
III (Services)Up to R$ 180,0006%
III (Services)R$ 180,000.01 to R$ 360,00011.2%
III (Services)R$ 360,000.01 to R$ 720,00013.5%
III (Services)R$ 720,000.01 to R$ 1,800,00016%
III (Services)R$ 1,800,000.01 to R$ 3,600,00021%
III (Services)R$ 3,600,000.01 to R$ 4,800,00033%
IV (Specific Services)Up to R$ 180,0004.5%
IV (Specific Services)R$ 180,000.01 to R$ 360,0009%
IV (Specific Services)R$ 360,000.01 to R$ 720,00010.2%
IV (Specific Services)R$ 720,000.01 to R$ 1,800,00014%

Joining Simples Nacional simplifies taxation and allows you to focus on business growth.

It is an advantageous option for microenterprises e small businesses who want to optimize tax management.

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Presumed Profit: when is it the best choice?

The regime of Presumed Profit is one of the three taxation options in Brazil.

It is great for companies with annual revenues of up to R$1,400,000.

This is because these companies have constant and high profits.

With the Presumed Profit, taxation becomes simpler.

The idea is that the company pays taxes based on a profit margin on revenue.

The rates vary according to the company's activity, ranging from 1.6% to 32% on revenue.

For example, imagine an engineering company with a monthly turnover of R$$12,000.00. The main taxes would be:

  • PIS: R$78 (0.65%)
  • COFINS: R$360 (3%)
  • ISS: R$600 (5%)

If the company invoiced R$36,000.00 quarterly, taxes would be calculated on R$11,520.00.

The IRPJ would be R$1,728.00 (15%) and the CSLL would be R$1,036.80 (9%).

O Presumed Profit it's simple for the tax planning. This is different from the regime of Real Profit, which is more complex.

With the Presumed Profit, taxes are calculated quarterly with less effort.

Companies with profit margins below 32% should think carefully before choosing Presumed Profit.

Taxation may be higher than the financial situation allows.

In these cases, the Real Profit can be better.

This is because it allows deductions of expenses and offsets of tax losses from previous periods.

How to identify the best tax regime for your company

To choose the best tax regime, you need to look at several aspects of the company.

This includes annual revenue, profit margin, operating costs and type of activity.

In Brazil, there are three main regimes: Real Profit, Presumed Profit and Simples Nacional.

Each one has its own particularities that affect the tax efficiency of the company.

For MEIs with revenues up to R$81,000.00, Simples Nacional is a good option. This is because it has lower tax rates.

Microenterprises (ME) and Small Businesses (EPP) can also benefit from this regime, depending on their revenue.

Companies with low profits, such as service companies, may prefer Real Profit.

This is because Income Tax rates vary between 15% and 25%.

The Presumed Profit is better for industries and businesses, with rates of 8%.

For services, rates can reach 32%, being ideal for revenues of up to R$ 78 million.

It is essential to consult experts in tax consultancy.

They will carry out a complete analysis, thinking about the company's present and future.

Therefore, the choice of tax regime will be the most efficient for the company's objectives.

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Best tax regime for your company: Conclusion

Choosing the tax regime is very important for the financial health of your company.

In Brazil, there are three options: Presumed Profit, Real Profit and Simples Nacional.

Each has its advantages and obligations. It is essential to understand each regime well to make the best choice.

Simples Nacional is great for micro and small businesses.

They can have up to R$ 4.8 million in annual revenue.

This regime is simple and helps with financial control, thanks to the DAS guide.

The Presumed Profit is flexible for companies with revenues up to R$78,000,000.00.

Tax rates vary from 1.6% to 32%, depending on the activity.

It is important to analyze quarterly gross revenue carefully.

Real Profit is the most complex regime.

It is mandatory for companies with revenues above R$78,000,000.00. It taxes on net profit, allowing PIS and COFINS credits.

This can be good for companies with high costs.

Choosing the right tax regime can greatly improve your company's profitability.

Stay up to date with tax laws.

Consider seeking help from a specialized accountant to choose the best regime for you.

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