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Brazil proposes further service taxes on banking

  • VAT
  • 26 August 2014 | Richard Asquith

Brazil proposes further service taxes on banking

Brazil is reviewing extending the existing Imposto sobre servicos (ISS) munipal tax to current accounts and other banking services.

ISS is generally charged from 2% to 5%, but there are variations across the municipalities. There are over 5,000 taxing municipalities in Brazil of the purposes of ISS.

The bank ISS move would close a number of loopholes banks and investment companies have been using to avoid ISS charges.

By contrast, 10 members of the European Union have failed so far in their attempts to introduce a similar Financial Transaction Tax (FTT) due to ongoing debate around the extra-territorial reach of the tax to other EU and non-EU member states.  Korea recently decided to switch to levying VAT on banking instead.


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 is part of the European leadership team which this year won International Tax Review's 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.