O Presumed Profit is one of the tax regimes most commonly adopted by Brazilian companies wishing to simplify tax assessment, especially those with stable profit margins.
Despite their popularity, understanding the rules, calculations and tax rates can be challenging, especially for those looking to reduce their tax burden efficiently.
In this article, you'll find very complete content on Presumed Profit, with detailed explanations of how it works, its advantages, how to calculate it, and everything else you need to know to avoid tax errors and ensure the success of your business.
What is Presumed Profit?
O Presumed Profit is a simplified tax regime for calculating corporate income tax (IRPJ) and Social Contribution on Net Profit (CSLL).
Under this regime, the taxes in question are not calculated on the basis of the company's actual net profit, but on a percentage of turnover pre-defined by legislation, which varies according to the economic activity.
Main characteristics of Presumed Profit:
- Simplification in the calculation of IRPJ and CSLL.
- Profit presumption percentages determined by the IRS.
- Suitable for companies with a profit margin higher than the presumed one.
How do you know if your company is Real or Presumed Profit?
Determine whether the company should opt for Presumed Profit or Real Profit is a strategic decision that depends on factors such as turnover, profit margin and sector of activity.
If you have any doubts and don't know what your company's current tax regime is, you can get this information from your accountants.
Choosing the most suitable tax regime for your size and type of business is a very important item, as it can represent significant tax savings.
Criteria for opting for Presumed Profit:
- Annual turnover: It must be less than R$ 78 million (or R$ 6.5 million per month in the case of activities started during the calendar year).
- Economic activity: All activities are allowed, except for those obliged to use the Real Profit system, such as financial institutions and companies with specific tax incentives.
When to choose Presumed Profit?
- Companies with high and stable profit margins;
- Businesses seeking less accounting complexity;
- Companies that do not meet the mandatory Real Profit requirements.
How to calculate Presumed Profit?
Presumed Profit is calculated in stages, taking into account the company's revenues and applying the percentages of presumed profit established by law.
Then apply Presumed Profit rate to calculate IRPJ and CSLL.
Step by step to calculate the Presumed Profit:
1.Determine the gross revenue for the period: Consider all the revenues earned by the company in the quarter.
2.Apply the presumption percentage: The percentage varies from 8% to 32%depending on the economic activity.
3. Calculate the IRPJ: Multiply the presumed base by the IRPJ, which is 15%.
4.Calculate the CSLL: The CSLL rate is 9% on the presumed basis.
5. Include other taxes: In addition to IRPJ and CSLL, the company must pay PIS, COFINS, ICMS (for the sale of goods and the provision of some services), and ISS (in the case of service providers).
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Presumed Profit rates
The Presumed Profit rates vary according to the company's economic activity and the legislation in force.
In addition, it is important to clarify that each tax has its own rates and calculation system, as detailed below.
IRPJ rate in Presumed Profit
To calculating Presumed Profit In order to calculate the IRPJ, you must first multiply one of the presumption rates below by the company's turnover, depending on the type of activity.
| Activities | Rate |
|---|---|
| Retail sale of fuel and natural gas | 1.60% |
| - Sale of goods or products - Cargo transportation - Real estate activities - Hospital services - Rural Activity - Industrialization with materials supplied by the ordering party - Other unspecified activities (except provision of services) | 8 % |
| - Transportation services (except freight) - General services with gross revenue up to R$ 120,000/year | 16% |
| - Professional services - Business intermediation - Management, leasing or assignment of movable/immovable property or rights - Services in general, for which no specific percentage has been set | 32% |
In turn, a percentage of 15% is applied to the amount found to arrive at the amount of IRPJ payable. Here's an example:
- Billing: R$ 100.000,00
- Activity: Sale of goods and products (trade).
IRPJ base: R$ 100,000.00 x 8% (table rate) = R$ 8,000.00
IRPJ payable: R$ 8,000.00 x 15% (calculation rate) = R$ 1,200.00
CSLL rate
The calculation of CSLL in Presumed Profit follows the same way of calculating IRPJ, with differences in the rates used.
See the table below for the CSLL presumption rates:
CSLL rate for Presumed Profit
| Activities | Rate |
|---|---|
| Trade Industry Hospital services Transportation services | 12% |
| Services in general, except hospital and transportation services Business intermediation; Management, leasing or assignment of real estate, furniture and rights of any kind. | 32% |
In turn, a percentage of 9% is applied to the amount found to arrive at the amount of CSLL payable. See the example:
- Billing: R$ 100.000,00
- Activity: Sale of goods and products (trade).
CSLL base: R$ 100,000.00 x 12% (table rate) = R$ 12,000.00
CSLL payable: R$ 12,000.00 x 9% (calculation rate) = R$ 1,080.00
PIS and COFINS rates in Presumed Profit
Unlike IRPJ and CSLL, PIS and COFINS are calculated directly.
Therefore, the rates apply directly to the business's turnover.
- PIS: 0.65%
- COFINS: 3%
Here's an example calculation:
- PIS: R$ 100,000.00 x 0.65% = R$ 650.00
- COFINS: R$ 100,000.00 x 3% = R$ 3,000.00
ICMS and ISS rates
Finally, depending on the type of activity, companies still have to pay ICMS (Tax on the Circulation of Goods and Services) and ISS (Tax on Services).
The ICMS rate varies according to the legislation of each state, while the ISS rate varies according to the legislation of each municipality, respecting a range of 2% to 5% on company turnover.
Advantages and disadvantages of Presumed Profit
After presenting the rates and ways of calculating the regime, it is important to point out that just like any other, Presumed Profit is a tax regime that has advantages and disadvantages.
Therefore, it is very important that, with the guidance of the accounting department, the entrepreneur sees if this is in fact the right thing to do. the best tax regime for your companyIn other words, the most economical alternative available.
That said, among the advantages of Presumed Profit, we can highlight the following:
- Administrative simplicity: Presumed Profit has fewer accounting requirements than Real Profit.
- Reduced accounting costs: It does not require complete bookkeeping to calculate profit.
- Tax predictability: The fixed tax base makes financial planning and tax calculation easier.
The disadvantages of the system include:
- Inflexibility for companies with low profit margins: The calculation assumes a fixed profitability, which can result in high taxation for companies with smaller margins.
- No use of credits or losses: Unlike Real Profit, it does not allow credits and losses to be used to deduct taxes.
Common tax mistakes in Presumed Profit
Opting for Presumed Profit requires care to avoid tax errors that could lead to fines or disqualification. Some of the most common mistakes include:
- Error in determining gross revenue:
Including undue income or underestimating amounts can lead to tax inconsistencies.
- Inadequate calculation of tax rates:
It is essential to apply the Presumed Profit rates correctly, taking into account the type of activity.
- Lack of tax planning:
Companies that don't assess their financial profile beforehand may end up choosing a less advantageous regime.
In order to avoid the above mistakes and others that may arise, it is very important that entrepreneurs rely on the advice of a specialized accounting firm such as CLM Controller.
Taxation for service providers under Presumed Profit
For companies that provide services, the taxation for service providers in Presumed Profit is based on a higher percentage of presumption, usually 32% of gross revenue.
In addition, it is necessary to consider the payment of ISS (Service Tax), which varies from 2% to 5%, depending on the municipality.
It is therefore important to pay attention, because in some cases Simples Nacional or Lucro Real can be cheaper options.
When is Presumed Profit the best choice?
Presumed Profit is ideal for companies with high profit margins, low operational complexity and turnover below the R$ 78 million threshold.
Businesses that manage to simplify their accounting structure and keep costs low benefit from the characteristics of this regime.
Examples of sectors that benefit from Presumed Profit:
- Retail and wholesale trade;
- Highly profitable services;
- Small industries.
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Difference between Presumed Profit and Simples Nacional
O Simples Nacional and Presumed Profit are two tax regimes widely used by Brazilian companies, but they have different characteristics and requirements.
The choice between them depends on factors such as turnover, administrative complexity and tax burden.
Main differences:
Billing:
- Simples Nacional is aimed at companies with an annual turnover of up to R$ 4.8 million.
- Presumed Profit caters for companies with annual turnover of up to R$ 78 million.
Form of taxation:
- Under Simples Nacional, taxes are paid in a single bill, with a progressive rate according to the company's annex.
- In Presumed Profit, taxation is based on a fixed presumption percentage applied to gross revenue, with separate calculations for IRPJ, CSLL, PIS, COFINS and ISS.
Complexity:
- Simples Nacional is more simplified, ideal for smaller companies with little accounting structure.
- Presumed Profit requires more rigorous bookkeeping and tax assessment.
Who should avoid Presumed Profit?
Despite its advantages, Presumed Profit is not ideal for all companies. It can be disadvantageous in some situations, such as:
Companies with low profit margins:
Businesses with lower margins than the presumption percentages may pay more tax than they really should.
Companies with high operating expenses:
Presumed Profit does not allow the deduction of operating expenses, such as rent or payroll, which can increase the tax burden compared to Real Profit.
Companies with variable revenues:
Businesses with seasonal or unstable revenues can find it difficult to maintain tax compliance.
How to avoid tax assessments with Presumed Profit
To avoid problems with Internal Revenue ServicePresumed Profit companies must:
Monitoring the issuing of invoices: Errors in issuance can lead to assessments and fines, so it is very important to pay extra attention when issuing one or more tax documents.
Keeping the bookkeeping up to date: The absence of accounting records is one of the main causes of penalties.
Rely on specialized accounting advice: An experienced team can identify inconsistencies and ensure tax compliance.
Presumed profit tax planning
O tax planning is an essential tool for companies wishing to optimize their tax costs and increase financial efficiency.
In the case of Presumed ProfitThis strategy becomes even more relevant, considering that the regime offers simplicity, but requires attention to avoid wasting resources or tax errors.
Tax planning is the process of analyzing and organizing the company's fiscal and financial activities in order to legally reduce the tax burden.
In practice, it involves choosing the most appropriate tax regime, taking advantage of tax incentives and organizing operations to minimize taxes owed.
Presumed Profit tax planning should be structured in strategic stages, with the aim of maximizing tax benefits. Here's how it works:
1. company profile analysis
Before making any decision, it is essential to understand:
- Sector: The percentage of presumed profit varies according to the economic activity.
- Annual turnover: Check that your turnover is within the Presumed Profit limit (R$ 78 million per year).
- Operating expenses: Companies with high costs can consider Real Profit as an alternative.
2 Comparing tax regimes
One of the pillars of planning is to compare Presumed Profit with other tax regimes, such as Real Profit and, in some cases, Simples Nacional. The analysis should include:
- Presumption percentages and real profit margins.
- Applicable rates for each regime.
- Administrative complexity of each option.
3. identifying tax incentives
Presumed Profit companies can benefit from tax incentives offered by states and municipalities, such as:
- ISS reduction: Some municipalities offer lower rates for certain services.
- Development programs: Benefits for companies in economic development areas.
4. organization of operations
The structuring of operations can have a direct impact on the tax burden:
- Decentralization of activities: Carrying out operations in states with lower ICMS or ISS rates can generate savings.
- Separation of activities: If the company operates in different sectors, separating operations into separate CNPJs can reduce the total tax burden.
5. review of accounting and tax records
Keeping regular and organized accounts is essential to avoid fines and penalties. Some important practices include:
- Correct recording of income and expenditure;
- Periodic checking of invoices issued and received;
- Guarantee that all taxes are being correctly assessed.
6. tax simulations
Carrying out simulations makes it possible to predict the impact of different tax scenarios on the company's cash flow. For example:
- What would be the tax impact of an increase in quarterly turnover?
- How can operating costs influence the viability of Presumed Profit?
Analyses of this nature need to be carried out with the support of a specialized accounting firm prepared to help you save on tax payments.
Benefits of tax planning in Presumed Profit
There's no doubt about it, good tax planning can guarantee a series of benefits for your company:
1. reducing the tax burden: With planning, you can identify opportunities to pay less tax legally.
2. better financial management: Anticipating tax costs makes cash flow planning easier.
3. Avoiding fines and penalties: Correct compliance with tax obligations reduces the risk of assessments and sanctions.
4. taking advantage of incentives: State and municipal programs can be integrated into planning to generate savings.
On the other hand, it is worth noting that a lack of tax planning can lead to various problems, such as:
- Paying unnecessarily high taxes;
- Disqualification from the regime due to billing or activity errors;
- Fines for failure to comply with accessory obligations.
In addition, companies that don't plan their taxation properly can lose competitiveness, since higher tax costs can be reflected in the final price of their products or services.
Conclusion: planning is the key
O Presumed Profit is an excellent option for many companies, but its choice must be based on a detailed analysis of the business profile.
Understanding the Presumed Profit ratesknow how to calculate and avoid tax errors are essential steps to ensure success in the tax system.
The CLM Controller Accounting specializes in helping companies choose the most advantageous tax regime and in pay less tax.
Contact us and find out how we can help your company grow efficiently and safely!
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