globaltaxnews.ey.comSign up for tax alert emailsPrintDownload

28 November 2018

Brazil issues new income tax regulations

The Brazilian Government published Decree 9,580 (23 November 2018), which replaces the income tax regulations established by Decree 3,000 in 1999. The new regulations consolidate all the different pieces of income tax legislation published up to 31 December 2016. The Decree, therefore, includes different rules over 17 years, but does not include some changes introduced during 2017 and 2018.

Decree 9,580 includes some rules based on the new Civil Code (Law 10,146/02), as well as some important provisions of Law 12,973/14, which significantly changed the income tax legislation to incorporate the new accounting principles (aligned with IFRS) that Brazil adopted in 2013. It also covers the relevant changes made to Brazilian tax legislation related to the tax amortization of goodwill on merger and acquisition transactions, and the taxation of profits of foreign controlled and affiliated parties. (For more information on Law 12,973, see EY Global Tax Alert, Brazil enacts tax reform, dated 15 May 2014.)

The Brazilian corporate income tax consists of two different taxes:

  • The basic income tax of 15% plus a 10% surplus
  • The 9% social contribution on net profits (20% for most financial institutions, going down to 15% beginning 1 January 2019)

Decree 9,580 only covers the income tax portion of the corporate income tax, not the social contribution on net profits.

The Decree was effective on 23 November 2018.

We are still evaluating the new text and will soon comment on any relevant changes.

For additional information with respect to this Alert, please contact the following:

Ernst & Young Serviços Tributários SP Ltda, São Paulo
  • Ana Marra | analucia.marra@br.ey.com
  • Washington Coelho | washington.coelho@br.ey.com
  • Sergio Fontenelle | sergio.fontenelle@br.ey.com
  • Orlando Veloci | orlando.veloci@br.ey.com
  • Felipe Carvalho | felipe.carvalho@br.ey.com
Ernst & Young, LLP, Latin American Business Center, New York
  • Gustavo Carmona Sanches | gustavo.carmona1@ey.com
  • Aline Nunes | aline.nunes1@ey.com
  • Marcus Segnini | marcus.segnini1@ey.com
  • Ana Mingramm | ana.mingramm@ey.com
  • Enrique Perez Grovas | enrique.perezgrovas@ey.com
  • Pablo Wejcman | pablo.wejcman@ey.com
Ernst & Young LLP (United Kingdom), Brazilian Tax Desk Leader, London
  • Felipe Fortes | ffortes@uk.ey.com
Ernst & Young LLP (United Kingdom), Latin American Business Center, London
  • Jose Padilla | jpadilla@uk.ey.com
Ernst & Young Tax Co., Latin American Business Center, Japan & Asia Pacific
  • Raul Moreno, Tokyo | raul.moreno@jp.ey.com
  • Luis Coronado, Singapore | luis.coronado@sg.ey.com

ATTACHMENT

Document ID: 2018-6369

 
 

The information contained herein is general in nature and is not intended, and should not be construed, as legal, accounting or tax advice or opinion provided by Ernst & Young LLP to the reader. The reader also is cautioned that this material may not be applicable to, or suitable for, the reader's specific circumstances or needs, and may require consideration of non-tax and other tax factors if any action is to be contemplated. The reader should contact his or her Ernst & Young LLP or other tax professional prior to taking any action based upon this information. Ernst & Young LLP assumes no obligation to inform the reader of any changes in tax laws or other factors that could affect the information contained herein.

 

Copyright © 2025, Ernst & Young LLP.

 

All rights reserved. No part of this document may be reproduced, retransmitted or otherwise redistributed in any form or by any means, electronic or mechanical, including by photocopying, facsimile transmission, recording, rekeying, or using any information storage and retrieval system, without written permission from Ernst & Young LLP.

 

Any U.S. tax advice contained herein was not intended or written to be used, and cannot be used, by the recipient for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions.

 

"EY" refers to the global organisation, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.

 

Privacy  |  Cookies  |  BCR  |  Legal  |  Global Code of Conduct Opt out of all email from EY Global Limited.

 


Cookie Settings

This site uses cookies to provide you with a personalized browsing experience and allows us to understand more about you. More information on the cookies we use can be found here. By clicking 'Yes, I accept' you agree and consent to our use of cookies. More information on what these cookies are and how we use them, including how you can manage them, is outlined in our Privacy Notice. Please note that your decision to decline the use of cookies is limited to this site only, and not in relation to other EY sites or ey.com. Please refer to the privacy notice/policy on these sites for more information.


Yes, I accept         Find out more