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SLIDE 2 This publication is intended to provide information for businesses and individuals regarding the Brazilian legal system. It has been prepared for general guidance on matters of interest only, is intended for information and summary in
- nature. It has been prepared by and is the property of Leal
Cotrim Advogados. This publication does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional legal advice. No representation or warranty (express or implied) is given as to the accuracy or completeness
- f the information contained in this publication, and, to the
extent permitted by law, Leal Cotrim Advogados, its members, and employees do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining from acting, in reliance on the information contained in this publication or for any decision based on it. Companies or individuals seeking an opinion concerning specific issues of the laws of Brazil are encouraged to contact Leal Cotrim Advogados, whose contact information is available online at www.lealcotrim.com.br.
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INFLOW OUTFLOW PAYMENT OF CAPITAL IOF 0.38% N/A DISTRIBUTION OF PROFITS N/A N/A NATIONALISATION OF SHARES N/A 15% OR 25% TRANSFER OF LOANED FUNDS IOF 6% IF < 189 DAYS N/A REPAYMENT OF LOANED FUNDS N/A TAX EXEMPT PAYMENT OF INTERESTS N/A 15% OR 25%
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Invoice amount 100.000,00 100.000,00 TAX RATE TAX BURDEN TAX RATE TAX BURDEN WHT/IRRF 15,00% 15.000,00 N/A N/A Received by Norwegian based Co. 85.000,00 PIS 1,65% 1.909,09 1,65% 1.909,09 COFINS 7,60% 8.793,39 7,60% 8.793,39 ISS 5,00% 5.000,00 5,00% 5.000,00 IOF 0,38% 323,00 N/A N/A CIDE 10,00% 10.000,00 N/A N/A Nominal Tax Burden 39,63% 41.025,48 14,25% 15.702,48
41,03% 15,70%
N/A
126.025,48
N/A
100.000,00
N/A 85.000,00 N/A 84.297,52
WHT/IRRF COULD BE OFFSET WITH INCOME TAX IN NORWAY CLIENT IS TAXPAYER FOR PIS, COFINS, ISS AND CIDE LOCAL SUPPLIER IS TAXPAYER FOR PIS, COFINS AND ISS OFFSET OF CREDITS WITH PIS AND COFINS UNDER NON- CUMULATIVE SYSTEM PIS AND COFINS 3,65% COMBINED TAX RATE UNDER CUMULATIVE SYSTEM INCOME TAX (IR + CSLL) ACCORDING TO PROFIT REGIME ADOPTED OTHER WITHHOLDING TAXES (IR, CSLL, PIS, COFINS, ISS) MAY APPLY, ACCORDING TO THE SERVICE PROVIDED
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Invoice Amount 100.000,00 100.000,00 TAX RATE TAX BURDEN TAX RATE TAX BURDEN II 20,00% 20.000,00 N/A N/A IPI 10,00% 12.000,00 10,00% 10.000,00 ICMS 18,00% 23.759,97 18,00% 21.951,22 PIS 2,10% 2.100,00 1,65% 1.909,09 COFINS 9,65% 9.650,00 7,60% 8.793,39 IOF 0,38% 380,00 N/A N/A Nominal Tax Burden 60,13% 67.889,97 37,25% 42.653,70
67,89% 42,65%
N/A
167.889,97
N/A
100.000,00
N/A 100.000,00 N/A 57.346,30
CLIENT IS TAXPAYER FOR II, IPI, ICMS, PIS, AND COFINS OFFSET OF CREDITS FROM TAXES PAID ON PREVIOUS OPERATIONS (IPI, ICMS, AND PIS/COFINS UNDER NON- CUMULATIVE SYSTEM) LOCAL SUPPLIER IS TAXPAYER FOR IPI, ICMS, PIS, AND COFINS PIS AND COFINS 3,65% COMBINED TAX RATE UNDER CUMULATIVE SYSTEM INCOME TAX (IR + CSLL) ACCORDING TO PROFIT REGIME ADOPTED
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GOODS APPLIED IN O&G EXPLORATION AND PRODUCTION, LISTED IN ANNEXES I AND II LINES, DUCTS, UMBILICALS, FLOWLINES/RISERS, CHRISTMAS TREES, MANIFOLDS DRILL PIPES STRUCTURES FOR PLATFORMS SUPPORT 5 YEAR USE PERIOD
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SLIDE 25 RATE BASIS AMOUNT GROSS MONTHLY SALARY • BRL LABOUR BENEFITS ❶ ❷ 1.111,00 Vacation additional pay (1/3) 2,78%
278,00 Christmas bonus/13th salary 8,33%
833,00 TAXES ❶ ❸ 4.088,85 Social Security Contribution (INSS) 20,00% • Gross monthly salary + labour benefits 2.222,20 Social Security Contribution for Occupational Accident Insurance (RAT) 3,00%
labour benefits ❹ 333,33 Social Security Contributions for 3rd parties (Terceiros ) 5,80%
labour benefits 644,44 Employee Severance Indemnity Fund Contribution (FGTS) 8,00%
labour benefits 888,88 TOTAL EMPLOYER MONTHLY COST
❷ Rates correspond to monthly provision. ❸ Basis includes, in addition to the sum of employees' salaries, other amounts paid by the company, such as compensation to independent contractors.
10.000,00
❹ Tax rate may be 1%, 2% or 3% depending on employer's activities. Additionally, rates may be reduced up to 50%
- r increased up to 100% depending on statistics calculation of accidents suffered by employers vis-à-vis industry
standards.
15.199,85
❶ Paid and borne by employer.
SLIDE 26 COMPARISON 10.000,00 8.123,19 + 52,00% 87,12%
EMPLOYER COST
15.199,85 15.199,85
EMPLOYEE SALARY GROSS EMPLOYEE SALARY NET RATE BASIS AMOUNT CALCULATION OF NET MONTHLY SALARY Gross monthly salary 10.000,00 Reductions
Withholding income tax 27,50%
- Gross monthly salary
- 869,36 allow ance
- 1.880,64
Social Security Contribution 11,00%
- Gross monthly salary
- Cap BRL 621.03 per employee
- 621,03
Net monthly salary 7.498,33 8.123,19 Net monthly salary considering 13th salary
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