In Portuguese State Tax on Circulation of Goods and Services is named Imposto Sobre Circulação de Mercadorias e Serviços and often referred to by the abbreviation ICMS
ICMS is the Brazilian tax charged upon sales, services, movement of goods, transportation and communication services, and supplying of any goods.
It’s up to each Brazilian State to establish their own tax rate, which means that the ICMS rate varies among the states of Brazil. In 2013, the rates of ICMS were:
· 18% in Minas Gerais, Paraná and São Paulo.
· 19% in Rio de Janeiro.
· 17% in other states.
• IMPORT TAX
Import duties are charged when foreign products enter the country. The taxpayer is usually the importer, but in some cases the taxpayer could be the buyer. The function of import taxes is purely economic or regulatory and it’s different for each good. The values of the II rates can be found in the Tarifa Externa Comum, also known as TEC/NCM, the Common External Tariff established by Mercosur.
This contribution,COFINS, is similar to PIS and INSS as it is intended to finance welfare, health and social programs. COFINS is calculated over the gross revenue of private legal entities in Brazil. Currently COFINS is the second largest source of tax revenue for the Brazilian government, and the rate largely varies depending on the tax regime the company operates under: real profit, presumed profit or Special Brazilian Regime.
The Tax on Industrialized Products applies for national and foreign products which have been modified in some way for consumption or use. The basis of calculation is the retail sales price in Brazil; for imports, it is the sales price of the good and the import duty, plus other required fees. IPI is used as incentive for or discouragement of the consumption of some goods, and it has been decreased for the sale of products such as the low-end appliances, furniture and cars. The rates vary from zero to 20%.