Federal Taxes in Brazil

The table below shows the federal taxes collected in Brazil in 2007 and 2008; the original data was published by Receita Federal, and can be found here (the table is found on page 30).

The table comprises federal taxes and contributions (in Brazil, States and municipalities also can create and collect taxes, but those were not included in the table).

Federal Taxes in 2007 and 2008. Values in R$ millions, in prices of December 2008 (approximate exchange rate: US$ 1 = R$ 2).

Tax / Contribution	2008	2007
Tax on Importations	17,600	13,243
Tax on Industrial Products (IPI) - Total	40,354	36,572
IPI - Tobacco	3,285	3,027
IPI - Drinks	2,498	2,791
IPI - Vehicles	6,138	5,622
IPI - Imported Products	10,619	8,320
IPI - Others	17,814	16,812
Income Tax (IR) - Total	196,302	173,234
IR - Individuals	15,348	14,756
IR - Corporations	86,909	75,757
IR - Financial Corporations	13,045	14,675
IR - Corporations - Other Sectors	73,864	61,081
IR - Retained by Source	94,045	82,722
IR - Retained by Source - Labor Income	52,804	45,741
IR - Retained by Source - Interest on Capitals	25,330	23,094
IR - Retained by Source - Income Abroad	9,764	8,424
IR - Retained by Source - Other Income	6,147	5,463
Tax on Loans and Insurance (IOF)	20,795	8,464
Tax on Rural Properties (ITR)	476	408
Contribution on Financial Transactions (CPMF)	1,202	39,431
Contribution for Social Security (COFINS)	123,567	111,214
COFINS - Financial Sector	6,143	5,991
COFINS - Other Sectors	117,424	105,223
Contribution for PIS - PASEP	32,324	29,007
PIS/PASEP - Financial Sector	1,210	1,176
PIS/PASEP - Other Sectors	31,115	27,831
Social Contribution on Net Profit (CSLL)	45,049	37,315
CSLL - Financial Sector	6,052	5,155
CSLL - Other Sectors	38,996	32,1559
Economic Contribution - CIDE	6,100	8,585
Contribution - FUNDAF	258	397
Other Taxes and Contributions	6,898	8,264
Social Security Contributions	184,404	166,134
Total Taxes collected by Receita Federal	675,328	632,269
Other Federal Revenues	26,074	19,101
TOTAL FEDERAL REVENUE	701,403	651,371

Some observations:
The total of taxes in 2008 was about R$ 276 billion, whereas the total of contributions was around R$ 209 billion. In 2007, totals had been R$ 232 billion for taxes and R$ 226 billion for contributions.
Contributions have been growing faster than taxes. Reasons: it is easier for the Government to create a new contribution than to create a new tax; the Federal Government must share part of IR and IPI with States and municipalities, whereas the full contributions are retained - hence, for the Federal Government it is better to increase contributions than taxes. Read more about taxes and contributions.

The CPMF was a contribution levied on financial transactions; everytime a check was drawn or funds were moved, both the creditor and the debtor had to pay 0.038% of the transaction as CPMF; besides, CPMF was useful to trace all non-accounted money.
CPMF existed only until December 2007; some residual money was paid in 2008. Interesting to notice that, as soon as the Congress extinguished CPMF, the Government increased IOF, a tax on financial transactions, which supposedly should be levied on loans and insurances only; every check drawing or fund moving paid 0.038% IOF in 2008.

The item Social Security Contributions refers to the money that is paid by employers and employees to the public social security system.

The item Other Federal Revenues refers to money which is not collected by Receita Federal, such as, for example, the funds received by Prosecution of debtors, and revenues derived from privatization of public companies.


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