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Former Member
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TaxWhy/When/for Who Calculated?comments
PISFedereal TaxContribution on the Social Integration Program
COFINSFedereal TaxSocial Security Financing Contribution
IPIFedereal TaxTax on Manufactured Products, and Imported Products
ISSMunicipal Taxlocal tax on Services of any nature, upon the commissions received.
Imposto Sobre Serviço de Qualquer Natureza (ISSQN)
ICMSState TaxTax on Distribution of Goods and Services: Sales and Movement
ICMS-PPBState Tax only for intrastate operation or interstate operation for non taxpayerProcesso Produtivo Básico
ICMS-STICMS-ST is only applicable for
- NEWS PRODUCTS, and with the fiscal classification described in the internal Decree or protocols (state from/state to).          
-operations ICMS taxable, and customer taxpayer, except end user in the SP state (internal operation).
WHT ICMS or ICMS taxing substitution
Imposto de ImportaçãoFederal Tax - Every purchasing transaction(PO) when a product or services is importedThe importation tax is applied when we import services and products, the rate and definitions is very different depending on the description of the procurement transaction.
PIS RFFederal WHT Tax - At each sales transaction these taxes (also referred as PCC WHT) needs to be calculated based on customerWithholding on Federal tax Social contributions
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On products only when the customer is federal government
- On Service, depends of customer type and service type
COFINS RFFederal WHT Tax - At each sales transaction these taxes (also referred as PCC WHT) needs to be calculated based on customerWithholding on Federal tax Social contributions
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On products only when the customer is federal government
- On Service, depends of customer type and service type
CSLL RFFederal WHT Tax - At each sales transaction these taxes (also referred as PCC WHT) needs to be calculated based on customerContribuição sobre Lucro Líquido (CSLL),

On September 30 2004 the Brazilian authorities issued Provisional Measure 219 (PM 219), which granted tax benefits on purchases of fixed assets. Effective as from October 1 2004, Brazilian legal entities are allowed to claim a credit for social contribution on net income (CSLL) purposes (to be offset against the CSLL liability), corresponding to 25% calculated over the book depreciation of assets acquired between October 1 2004 and December 31 2005.
IR RFFederal Income tax (WHT)On products only when the customer is federal government
ISS RFMunicipal Tax (WHT)Withholding on ISS Tax
INSSFederal Tax - Social SecurityCases when Lexmark Employees are deployed at Customer Site
-- Lexmark should calculate this tax amount(INSS) on the invoice to the customer
-- The Customer will use this amount and pay the Social security tax to the Brazil government instead of Lexmark
-- Customer will be paying Lexmark the rest of the invoice excluding INSS
CIDEFederal Tax - Every sales transaction which has a Lexmark's Intellectual property (IP) and/or Royalty involvedContribution on Economic Activity – Overseas Remittances

Payments of royalties and fees on technical transfers and technical services by foreign persons. Rate = 10%

The CIDE is assessed on remittances overseas relating to payments of copyrights, trademark and patent royalties, technical services and assistance, administrative support and related activities. As a rule, the Brazilian company figures as taxpayer of the CIDE tax, which is levied at up to 10% on the amounts remitted overseas. This contribution usually escapes the provisions set forth in the international double taxation treaties to which Brazil is a signatory.
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