The complexity of Brazilian tax legislation is an undeniable fact. In this sense, there are many terms in the tax field and understanding this language can be a challenging process.
Understanding tax language is fundamental to correctly interpreting tax laws and regulations and making strategic decisions on financial and tax issues.
In order to guide you through this process and help you understand tax language, we have prepared a tax glossary explaining the most relevant terms.c
Read on and check it out!
Benefícios de entender o vocabulário tributário
By understanding tax terms, you can avoid errors and fines, optimize your tax burden, identify opportunities for tax savings and ensure compliance with applicable laws and regulations.
In addition, knowledge of tax jargon can facilitate communication with tax authorities and other professionals in the sector.
Main terms in the tax glossary
See the main tax terms below!
Rate: the percentage that will be applied to the calculation base to determine the amount of a given tax.
Calculation base: the amount on which the rate is applied to determine the amount of tax due.
Taxpayer: is the subject of a tax obligation. Any person – natural or legal – who pays a tax (in the generic sense) to the public coffers, whether of the Union, the states, the municipalities and/or the Federal District.
DAS: Documento de Arrecadação do Simples Nacional. It unifies the payment of taxes, automatically transferring each one to the accounts of the state, municipality and federal government.
Social charges: refers to all the expenses that companies incur, compulsorily or otherwise, for the benefit of their employees and their families, directly and/or indirectly, including those intended to finance social security, which is the responsibility of the Government, and other social contributions. Example: FGTS on payroll.
FGTS: Severance Indemnity Fund. It is made up of compulsory employer contributions on payroll, deposited at the Caixa Econômica Federal in a specific employee account. The account can be redeemed in certain situations, such as dismissal without just cause.
ICMS: Tax on Operations Relating to the Circulation of Goods and on the Provision of Interstate and Intermunicipal Transportation and Communication Services, also called Tax on the Circulation of Goods and Services. It is a non-cumulative state tax. It is a major source of revenue for the Federal District and the states.
ITCMD: Imposto sobre Transmissão Causa Mortis e Doação de Quais Bens ou Direito. This is a state tax on the transfer of inheritances and donations.
PIS/PASEP: Social Integration and Public Servant Equity Formation Programs. To maintain them, legal entities are obliged to contribute a variable rate (from 0.65% to 1.65%) on their total revenue, with the exception of micro and small companies that have joined the SIMPLES system.
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