Is Brazil the country with the highest taxes? Tips for your company

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In Brazil, tax rates are often the subject of debate, but how do they compare to the rest of the world? Let’s explore this issue and understand how political discussions can impact the business landscape.

Overview of Corporate Taxes in Brazil and the World
The Brazilian tax burden is a frequently debated topic, especially regarding its impact on companies. In this study, we explore the differences between corporate tax rates in Brazil and other countries, based on data.

In Brazil, companies face a complex and high tax burden, which can bulgaria phone number list their competitiveness in the global market. In contrast, countries such as the United States and some European countries have lower corporate tax rates , which can create a more favorable environment when it comes to tariffs and taxes for companies.

Tax Rate Comparison
Brazil has one of the highest tax burdens in the world, with a rate of 33.1% of GDP in 2023 (OECD, 2023) . Among the G20 countries, Argentina has a higher rate (34.4%) . In Latin America, the average is 22.5% (ECLAC, 2023) .
The nominal rate of Corporate Income Tax (IRPJ) in Brazil is 15%, but when other taxes such as CSLL (9%) are added, the effective burden on net profit reaches 34% (Deloitte, 2023) . This rate is higher than the average for the OECD (23.5%), the USA (21%) and China (25%) (PwC, 2023).
Brazil also stands out for its high payroll taxes, which can reach 37.33% (Ministry of Economy, 2023) . This rate is significantly higher than the OECD (25%) and US (7.65%) averages (OECD, 2023).
The Brazilian tax system also includes other taxes and contributions that impact companies, such as PIS, COFINS, ICMS, ISS and INSS.
Taking a look at some of the world's largest economic powers – the United States , China , the European Union and Japan – it is necessary to look beyond the taxes and fees and identify that each country has its own set of challenges and advantages. Let's analyze the advantages and challenges of Brazil, the global economic powers and the impact on the competitiveness of nations.