Do you know how to calculate the Real Profit and tax? Due to the tax complexity in Brazil, there is a large number of entrepreneurs who do not know exactly how their taxes are calculated according to the chosen tax regime.
In addition to generating great insecurity in the business environment, there is still a risk that your company will fail to comply with certain legal requirements or is collecting values higher than those that are really necessary.
Understanding the functioning of taxation is extremely important to regulate an organization’s tax burden and provide peace of mind for business management. The more aware you are about paying taxes, the better the results achieved.
In this article we have gathered all the information you need to know about how to calculate the Real Profit and the main characteristics of this tax regime. Visit taxfyle.com/sales-tax-calculator for perfect tax calculation for the same now.
What is Real Profit?
To learn about how to calculate Real Profit, we need to start by getting to know your concept better, right?
All Brazilian companies need to collect taxes related to their gains in operating activities. However, not all of them pay these taxes in the same way – as there are several tax regimes in force in Brazil.
Companies that choose Real Profit collect their taxes based on the net income earned in the period – which can be found by subtracting income and deductible expenses.
Although all the tax regimes raise doubts, questions about how to calculate the Real Profit are more frequent due to the complexity of this regime. However, this complexity does not mean that the amount to be paid by your company will be higher than the other schemes.
Which companies should opt for Real Profit
All companies can opt for Real Profit. However, this is also the mandatory tax regime for several legal entities such as those that cannot be classified under other tax regimes or has annual gross revenue above R $ 78 million.
- Whose activities are commercial banks, investment banks, development banks, savings banks, credit, financing and investment companies, real estate credit companies, securities brokerage firms, securities and foreign exchange, securities distributors, leasing companies, credit unions, private insurance and capitalization companies and open private pension entities.
- Who have profits, income or capital gains from abroad;
- That, authorized by tax legislation, enjoy tax benefits related to tax exemption or reduction;
- That, during the calendar year, have made monthly payment by the estimation regime.
To explore the activities of cumulative and continuous provision of credit, marketing, credit management, selection and risk management, administration of accounts payable and receivable, purchases of credit rights resulting from credit sales or installment payments. services (factoring).
Term and form of payment
The calculation of the Real Profit can happen quarterly or annually.