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.