Brazil Taxes

These notes apply only to certain taxes that pertain to our business and are not to be used any purpose other than our internal use:

General Overview:

Jurisdictions:

Federal Taxes

Income Tax

Methods of determining income subject to taxation.

The method of determining the amount of taxable income is based on an annual election by the taxpayer. The taxable income can be determined by actual results or the taxpayer can elect to use a presumed profits method. Under the presumed profits method, the taxable income is Actual Profits method.

Time of payment

TAX	RATE	Base	Credits
PIS (Actual profits)	1.65%	Revenues	All PIS tax paid on production materials. HOWEVER, most imported goods do not generate a PIS credit. The former PIS and Cofins cumulative system remains applicable for certain entities, such as financial institutions and companies under the deemed profit system (lucro presumido), The former PIS and Cofins cumulative system remains applicable for certain entities, such as financial institutions and companies under the deemed profit system (lucro presumido), PIS/COFINS Update	Monthly
COFINS (Actual profits)	7.6%	Revenues	All COFINS tax paid on production materials PIS/COFINS Update	Monthly
PIS (Presumed profits)	.65%	Revenues	No credits (cumulative tax)
COFINS (Presumed profits)	3%	Revenues	No credits (cumulative tax)
PIS on imports (goods & svcs)	1.65%	Cost + ICMS +ISS+PIS + COFINS	Goods/svcs used as input to mfg., IF using actual profits
COFINS on imports (goods & svcs)	7.6%	Cost + ICMS +ISS+PIS + COFINS	Goods/svcs used as input to mfg. IF using actual profits

Last updated 08/30/2007