Brazilian Tax Systems: Simples Nacional, Lucro Presumido and Lucro Real

Legal Definition of Tributes

A tribute is a payment in money or a pecuniary benefit whose value can be measured, and it does not constitute a sanction for a tort or an illicit act.

The tribute is mandatory because it derives from the imperial power of the State over the individual, requiring payment in legal tender.

Illicit Acts and Legal Obligations

An illicit act is one that goes against the rules and is punished by the State. The juridical obligation to pay a tribute does not constitute an act of punishment or a sanction.

Taxable Events and Import/Export Taxes

A taxable event is the occurrence described by law that triggers a tax obligation. The source of the obligation is not a specific choice but the law itself. Examples include:

• IE (Export Tax): Applied to the output of products outside of Brazil.
• II (Import Tax): Applied to the entry of foreign products into national territory.

Transfer Pricing and Property Taxes

Transfer Price: A professional accountant who understands Import Tax (II) can manage transfers and currency exchange without issues.

Property Tax: The generating factor is the ownership or possession of a property as of January 1st.

Taxable Regimes in Brazil

Simples Nacional (Super Simples)

Formerly known as the "Federal Simple," it was changed in June 2007. It applies to companies with income up to 240,000.00.

Estimated Profit (Lucro Presumido)

Applies to income up to 2,400,000.00. It does not require a full balance sheet; only the cash book is mandatory.

Taxable Income (Lucro Real)

This follows the same tax logic as Estimated Profit but requires the delivery of a full balance sheet to the Receita Federal (Federal Revenue).

Arbitrary Profit (Lucro Arbitrado)

This is a "punishment" applied by a tax auditor when a company's records are unreliable or careless (Real profit falls into the Arbitrary category).

The Simples Nacional Framework

The Simples is a federal form of taxation allowed for specific companies under Law 9,317/1996. It is regulated by normative instruction (IN-SRF 608), which raised revenue limits from 1,200,000.00 to 2,400,000.00. Article 24 establishes that performance begins the month following communication.

Unified Tax Collection

Taxes are unified into a single payment document. The DARF Simples includes:

• INSS: Social Security.
• IPI: Industrialized Products Tax.
• COFINS and PIS-PASEP: Social Integration and Public Server Assistance Programs.
• CSLL: Social Contribution on Net Income.
• IRPJ: Income Tax.
• ICMS: Tax on goods, interstate/intrastate transport, and communications.
• ISS: Service Tax.

Super Simples and Complementary Law 123/06

The Super Simples (National Complementary Law No. 123 of 12/14/06) came into force on 07/01/2007, unifying micro-enterprise regulations. Key features include:

• Single tax and social security payments.
• Access to micro-credit and public procurement for entrepreneurs.
• Technological and associative inclusion rules.

Note: The primary difference between the Federal Simple and the National Simple was the unification of ICMS and ISS at the national level.

Company Size and Revenue Limits

• MEI (Micro-Entrepreneur): Up to 36,000.00 per year.
• ME (Micro-Enterprise): Up to 240,000.00 per year.
• EPP (Small Business): Up to 2,400,000.00 per year.