BRAZIL, WORLD RECORD BREAKER IN CORPORATE TAXATION
Brazil will enter 2019 at the top of the list of countries with the highest corporate tax rate in the world. France, which currently leads the ranking, will promote a cut already announced by President Emmanuel Macron, which predicts a drop from the current 34.4% to 25% by 2022. The tax rate on profits of companies in Brazil (charged by Income and Social Contribution on Net Income) is 34%.
The survey was conducted by the Organization for Economic Cooperation and Development (OECD), a group of countries with more developed economies in the world and that has the highest rates globally. Brazil is not part of the organization, but it pleads for a vacancy.
The OECD study demonstrates how vital it is for Brazilian companies as well as international organizations working in the local market to focus on Tax Review and Tax Recovery.
It is enough to remember that the profit margins of many sectors, such as industry and commerce, are much more modest than the share of taxes on revenues.