Brazil COFINS digital services tax proposal
- Jul 14, 2020 | Richard Asquith
Brazil Senate is proposing imposing a 10.6% COFINS levy on providers of digital services to local consumers. (Bill No. 131/2020).
COFINS, Contribuição Social para o Financiamento da Seguridade Social – the federal tax contribution to the Social Security Financing paid on company revenues. The rate can be up to 7.6% on monthly revenue depending on the activities of the company.
The targeted gross revenues subject to the 10.6% charge would be:
- Electronic interfaces used for platforms selling goods and services
- Online marketing services
The threshold for paying the tax would be:
- Global revenues R$1.3bn;
- Brazil revenues: R$78m
See Avalara’s global Digital Service Tax tracker to find out what other countries are doing.