Real profit taxes: how they work, who has to pay and points to watch out for

The taxes on real profit represent a strategic challenge for companies that wish not only to be up to date with the Tax authorities, but also to align their tax management with the search for efficiency and competitiveness. 

For many entrepreneurs and managers, real profit is surrounded by doubts. After all, its rules require extra attention and a detailed look at the business's finances. 

On the other hand, when properly understood and applied, this system offers significant opportunities for planning, transparency and even tax savings.

 

 

In this article, you will understand, in a clear and objective way, how the main taxes levied on the tax regime work, which companies need to adopt it and what really differentiates this framework from other tax regimes. 

We will address points of attention and good practices to avoid tax risks, as well as answering the most common questions from those who want to make informed and safe decisions. 

If your goal is to strengthen the financial and tax management of your business, follow us: the following information will help you see beyond the obligations and exploit the strategic potential of real profit. Shall we delve deeper?

 

What is the real profit regime?

 

 

The real profit regime is one of the main models of taxation in force in BrazilIt is mainly used by medium-sized and large companies looking for transparency and greater fiscal control. 

Unlike other systems, this system calculates taxes based on the net profit actually obtained, adjusted according to the additions and exclusions provided for by law. 

This means that the calculation is not made on an assumed or simplified margin, but on the actual result of operations, accurately reflecting the company's financial performance. 

Choosing this regime requires rigorous accounting management, as the company needs to keep detailed records, map income and expenses and always be in line with accounting and tax regulations. 

This model is often seen by managers as a path to greater complexity, but at the same time an opportunity to develop intelligent tax strategies and take advantage of any tax credits. 

In short, the real profit system allows business owners to align their tax practices with the reality of the business, making it possible to reduce risks, improve planning and, in many cases, identify significant opportunities for tax savings.

What types of companies can qualify for real profit?

 

Various company profiles can opt for or be obliged to fall under the real profit regime, depending on the nature of their economic activity, their size and legal requirements. 

Medium-sized and large companies, especially those with complex operations and high turnover, find this regime better suited to their needs for transparency and tax planning. 

Companies with activities subject to specific regulationsFinancial institutions, credit cooperatives, private insurance companies, credit securitization companies and supplementary pension funds are also obliged to fall under this regime. 

In addition, companies that have revenues from abroad, or that deal with international corporate structures, usually choose this regime because of the benefits in terms of deductions, tax credits and control of the result. 

 

 

 

 

Holdings, groups with multiple subsidiaries, and organizations with sophisticated operations and diversified financial flows also see advantages in adopting the regime. 

In addition to the fact that some companies are obliged to do so, there are also companies that, even without the legal requirement, opt for real profit in search of flexibility in tax planning, risk mitigation and greater cash control. 

 

Who is obliged to pay real profit tax

 

In the Brazilian context, legislation determines that certain types of companies must be subject to the regime for calculating and paying their taxes. 

Firstly, this includes companies with an annual turnover above the limit established for the presumed profit, which currently stands at R$ 78 million. 

In addition to financial institutions in general, such as commercial banks, credit companies, brokerage firms, insurance companies, leasing companies, finance companies, etc. investment and credit unions are obliged to collect taxes on real profitregardless of turnover. 

Also included in this group are companies that earn profits, income or capital gains from abroad, those engaged in factoring activities, or that benefit significantly from federal tax incentives. 

Other examples of the obligation include companies that, in any month of the calendar year, have received profits from abroad, or those that have made payments considered non-deductible by law. 

Check out the main mandatory cases below:

• Financial and similar institutions
• Companies with gross revenue exceeding R$ 78 million in the previous calendar year
• Companies operating abroad
• Factoring companies
• Entities authorized to operate by national financial system bodies
• Companies with tax benefits that condition the adoption of real profit

 

How taxes on real profit work

How taxes on real profit work

 

Under the real profit regime, the main federal taxes such as Corporate Income Tax (IRPJ) and Social Contribution on Net Profit (CSLL) are levied directly on the profit actually calculated by the company. 

This means that, unlike the presumed regime, where the calculation basis is established by pre-defined rates on revenue, in real profit the accounting profit adjusted by tax additions and exclusions is considered. 

Practical operation requires the company to keep accurate bookkeeping, record all income and expenses and make adjustments as required by law (such as adding non-deductible expenses or excluding exempt income). 

This process leads to the calculation of actual profit, the basis for calculating federal taxes. In addition to these taxes, the company will also be subject to state taxes, such as ICMS (when goods are circulated), and municipal taxes, such as ISS (when services are provided). 

The amounts vary according to the activity carried out, the location and the size of the company. As a result, a central aspect of the regime is precision in calculating and controlling tax results, reducing the risk of assessments and taking advantage of opportunities related to tax credits.

 

 

 

What are the taxes on real profit?

 

Companies included in the regime are subject to a series of fees. taxes on real profitThese can be classified as federal, state and municipal, according to their nature and the type of activity carried out.

 

Federal taxes

 

Corporate income tax (IRPJ)

 

IRPJ is one of the main taxes on real profit, calculated quarterly or annually. Its base rate is 15% on adjusted real profit, with an additional 10% for profits exceeding R$ 20,000.00 per month. This tax directly reflects the company's actual profitability and can be impacted by tax offsets and legal incentives.

 

Social contribution on net profit (CSLL)

 

CSLL is payable to the Federal Government by all companies that opt for the real profit method. Rates vary from 9% to 20%, depending on the activity (most companies pay 9%). It is levied on the same adjusted profit used to calculate IRPJ, but with its own rules for additions and exclusions.

 

PIS and COFINS (Non-Cumulative Regime)

 

In real profit, PIS and COFINS are calculated using the non-cumulative system, with general rates of 1.65% and 7.6%, respectively, on gross revenue, allowing the use of credits for inputs, expenses and costs. This model provides a more detailed and flexible calculation, which is different from the cumulative regimes.

 

Tax on industrialized products (IPI)

 

For industrial or similar companies, IPI can be levied on the value of sales transactions, with varying rates depending on the nature of the products manufactured or sold.

 

State taxes

 

Tax on the circulation of goods and services (ICMS)

ICMS is a state tax levied on the movement of goods, interstate and intercity transportation and communication. The rate varies according to the state and the product, requiring constant monitoring for correct calculation.

 

Municipal taxes

 

Tax on Services of Any Kind (ISS)

ISS is a municipal tax and is mandatory for companies providing services. The percentage can vary between 2% and 5%, depending on the municipality and the type of service offered.

These are the taxes on real profit The most relevant taxes that affect real profit companies. However, depending on the operation, other taxes and contributions may be levied, requiring integrated and diligent management.

 

How to calculate real profit

 

Calculating real profit requires attention to detail and in-depth knowledge of tax and accounting rules. The starting point is the net profit for the year, recorded in the accounts according to Brazilian standards. 

Based on this result, adjustments determined by tax legislation are made, making up the so-called "additions", "exclusions" and "offsets". 

Additions refer, for example, to booked expenses that are not accepted for tax purposes (such as fines or expenses that do not have valid receipts). 

Exclusions refer to exempt income or tax benefits that can be subtracted from the base, while offsets cover tax losses accumulated in previous periods, which can reduce the calculation base up to a certain limit.

Once the adjustments have been made, the actual profit for the period is arrived at, on which the IRPJ and CSLL will be levied. The process can be done quarterly or annually, depending on the company's tax strategy. 

Many businesses opt for the annual calculation due to the greater flexibility in offsetting losses, while others prefer quarters for better cash flow control. 

It is also essential to monitor deductible and non-deductible income and expenses throughout the year, which requires integrated systems, automation and a specialized accounting team.

 

Practical example:

 

If a company made a net profit of R$ 500,000 for the year, but has non-deductible expenses totaling R$ 40,000 and exempt income of R$ 20,000, and can still offset a tax loss of R$ 60,000 from previous years, the calculation would be:

Net profit: R$ 500,000

Additions: R$ 40,000

Exclusions: R$ 20,000

Compensation: R$ 60,000

= Real Profit: R$ 460,000

Taxes are calculated on this result. This is why monitoring and precision are key words for real profit companies.

 

How taxes on real profit are calculated

 

The taxes on real profit requires attention to the nature of each tax and the application of specific rates. Here's how to calculate each of the main taxes:

 

IRPJ (corporate income tax)

 

Calculate the actual profit as explained above.

Calculate 15% on the actual profit figure.

If the amount exceeds R$ 60,000 for the quarter (or R$ 20,000 for the month), apply a 10% surcharge on the amount that exceeds this limit.

Example:

 

Actual profit for the quarter: R$ 100,000

 

15% over R$ 100,000 = R$ 15,000

 

Additional 10% over R$ 40,000 (excess of R$ 60,000): R$ 4,000

 

Total IRPJ due: R$ 19,000

 

CSLL (Social Contribution on Net Profit)

 

Use the same adjusted real profit for CSLL.

 

Apply the rate according to the activity (most companies 9%).

 

Example:

 

Quarter value: R$ 100,000

 

9% over R$ 100,000 = R$ 9,000

 

PIS and COFINS (non-cumulative regime)

 

Calculate on gross revenue.

 

Apply the rates of 1.65% (PIS) and 7.6% (COFINS).

 

Subtract allowable credits (purchases of inputs, operating expenses, etc.).

Example:

 

Gross revenue: R$ 500,000

 

PIS: 1.65% on R$ 500,000 = R$ 8,250 (less credits allowed)

 

COFINS: 7.6% on R$ 500,000 = R$ 38,000 (less credits allowed)

 

IPI (when applicable)

 

Calculate the taxes on real profit on the value of the sales invoice for the industrialized products.

 

Apply the rate according to the product table.

 

ICMS (only when goods are in circulation)

The calculation basis is the value of the sale.

 

The rate varies depending on the state and the product.

 

ISS (only for service providers)

It is levied on the value of the services provided.

 

The rate varies between 2% and 5% depending on the municipality and type of service.

Each tax has specific rules for assessment and payment, which is why it is essential to have the right technology and a specialized team to ensure correct tax bookkeeping.

 

When the itax on real profit

 

The taxes on real profit Taxes can be calculated in two ways: annually or quarterly. In the quarterly calculation, taxes are calculated based on the results for each quarter of the calendar year, i.e. March, June, September and December. 

In the annual option, the calculation takes into account the entire financial year, making it possible to monitor monthly balance sheets and pay via estimates throughout the year, with any adjustments at the end of the period. 

Companies should assess which format best suits their cash flow and the dynamics of their operations, always observing legal requirements and planning their tax assessment strategically.

 

Points of attention for companies opting for this framework

 

Opting for this tax regime can leverage results and promote greater accounting transparency, but it also imposes significant challenges. 

Firstly, it requires strict control of accounting and tax entries, as any inattention can lead to inconsistencies in the calculation of real profit and the risk of assessments. 

In addition, it is essential to understand the rules for using tax credits and the limits on offsetting losses; wrong decisions on this point have an impact on the result for the year. 

Another crucial aspect is the need to keep valid documentation and receipts for all expenses and income posted, ensuring deductibility and avoiding contingencies with the tax authorities. 

Monitoring legislation, adjustments and tax incentives requires constant updating. Finally, companies with diversified operations or high financial flows need to invest in technological solutions and specialized technical support, avoiding rework and safely taking advantage of legal benefits.the legal ones safely.

 

What are the advantages of real profit?

 

• It allows deductions for operating and financial expenses, leading to fairer taxation.
• Allows the use of tax credits, generating tax savings.
• Flexibility to offset tax losses from previous years, reducing the tax base.
• Full transparency of figures and greater accounting control.
• Suitable for companies with lower margins or variable revenues.
• It improves strategic tax planning and facilitates international and complex operations.
• Reduces the risk of assessments for incompatible calculation bases.
• Strengthens image and governance in the eyes of the market and regulatory bodies.
• More respect for the business's real ability to pay.

 

Why relying on specialists makes a difference in managing tax on real profit

 

Understanding the taxes on real profit and mastering them in the context of your business is a strategic differentiator that goes beyond simple compliance with tax obligations. 

By adopting precise calculation practices, investing in technology and relying on strategic accounting, your company can turn challenges into opportunities for growth and legal certainty. 

To obtain personalized diagnoses and exploit the full potential of this regime, talk to an expert of CLM Controller and find out how we can boost your results safely, transparently and efficiently.