Brazil's Tax and Trade Policies under the Rousseff - Brazil-US ...

Brazilian Corporate TaxationReal Profit• Under the Real Profit, the amount of IRPJ and CSLL is calculated on an annual orquarterly basis on net profits before taxes, adjusted by additions (taxable revenues)and exclusions (deductible expenses) authorized by the applicable tax legislation• Tax losses may be carried forward with no time limitation but they may be used toreduce up to 30% of the taxable profit generated in a given yearPresumed Profit• Under the PPM, the amount of IRPJ and CSLL is calculated on a quarterly basis, overa profit margin calculated through the application of a certain percentage on the grossrevenue of the legal entity (the “presumed profit” margin)• Unlike the Real Profit, the Presumed Profit does not allow any kind of deduction andtax loss carry forward