7 things you don't know (but should know) about taxes in Brazil

Excerpts from Spotniks

1.  We pay more taxes on medications than on porno magazines and films - While erotic materials are taxed at a rate of 19%, medications are taxed at 34%. The system even treats us worse than animals, since veterinary medicines are only taxed at 13% only 1/3 of what's built into human medications.

2.  The complexity of our tax system competes for a Guinness World Record - Brazil has the highest tax of 189 countries.  A Brazilian tax lawyer decided to write a book about the gargantuan tax system - the book is also a Guinness Record holder, it stands 2.21 meters tall, weighs 7.5 tonnes, and consists of 41 thousand pages.

3.  As if our tax laws aren't already complex enough, on average 46 new tax laws are enacted every working day.  Ever since the Federal Constitution was passed in 1988, Brazil has enacted 320,343 new tax laws. Considering the number of working days for our legislators that works out to 46 new laws every business day.

4.  Our present import tax is higher than that of the USSR during the 80s.  Due to reforms import taxes in the USSR varied from 1% of necessities like food, to 30% for luxuries.  In Brazil all imports have an additional tax imposed of 60%, not counting state taxes. In some states the that may mean a total tax load of 89% of the value of the merchandise.

5.  Ours is the most unjust tax system in the world.  Out of 30 countries studied Brazil has had the worst record for amount of tax revenues that are actually returned to the people in services. It has been in last position for the past 5 years.

6.  If it weren't for tax evasion, Brazil would have the third greatest tax load on earth.  We 'appear' to be in 22nd place, but if you factored in what we would have in tax revenues if there were no tax evasion we'd be the third most taxed nation in the world.

7.  There is a hidden tax you don't even know about.  Most products and services have 6 or 7 hidden taxes built right into them. But there is another tax we don't consider - INFLATION.  To meet the increased demand for funds the government simply prints more money, devalorizing the currency and making everything cost more. Essentially this is just another tax.

Cheers,
James
expat.com Experts Team