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Brazil COFINS digital services tax proposal

  • Jul 14, 2020 | Richard Asquith

Brazil COFINS digital services tax proposal

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:

  1. Global revenues R$1.3bn;
  2. Brazil revenues: R$78m

See Avalara’s global Digital Service Tax tracker to find out what other countries are doing.

 


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VP Global Indirect Tax
Richard Asquith
VP Global Indirect Tax Richard Asquith
Richard Asquith is VP Global Indirect Tax at Avalara, helping businesses understand their compliance obligations as they grow globally. He can be contacted at: richard.asquith@avalara.com. He is part of the European leadership team which won International Tax Review's 2019 Tax Technology Firm of the Year. Richard qualified as an accountant with KPMG in the UK, and went on to work in Hungary, Russia and France with EY.