If you have your own business, you should deal at least several times with corporate income tax (IRPJ). This is a complex topic for many entrepreneurs who end up not knowing so well the laws and conditions that are associated with tribute. Did you know, for example, that some companies may have an income tax exemption?
In this post, we explain which businesses are eligible to be released or immune to this obligation, in addition to commenting on some of the characteristics of this tax in general and pointing out how good professionals can help you with this topic. Are you interested? So keep reading!
What is income tax for legal entities and how does it work?
IRPJ is a federal tax levied on Brazilian companies that have CNPJ (National Register of Legal Persons). This applies to enterprises of different natures, such as public, private and mixed societies.
Unlike income tax for individuals, which is paid annually, IRPJ is charged quarterly in March, June, September and December. The choice of annual payment (charged in December) is only available for businesses that choose a real profit scheme.
It is necessary to pay close attention to these terms and other standards, as companies are subject to fines and other types of injuries. There are interest and penalties for both the delay in paying the tax and the delivery of the declaration, so be careful and avoid delays.
Tax regimes determine what will be levied in the tax and how payment should be made, among other features. The main models are Real Profit, Presumed Profit, Arbitrated Profit and National Simple. Although each of them has its own specific conditions, as a rule, each charges at least 15% of the company’s total profits.
In the case of real profits, this percentage may change and increase, for example, if the profit exceeds 20,000 rubles or the amount collected is very high during the specified period. It is worth remembering that often a legal entity can choose a tax model as defined to be better. Some types of company, however, fit only in one of the conditions.
While this is mandatory for most businesses, some companies may exempt themselves from corporate income tax. Let’s better understand this condition then!
Which companies are entitled to income tax exemptions?
Almost all companies have to pay this tax. The exemption laws are very specific, but usually include non-profit institutions, whether educational, recreational, cultural or scientific. More detail immunity applies to:
- temples intended for any worship, i.e. churches and other religious institutions;
- political parties and workers’ unions, which are exempt from tax, provided that they do not distribute some of their assets for their own profit, will not keep a expense and income report on official books and apply their resources only in Brazil;
- other non-profit institutions and organizations, i.e. all those that do not have a surplus in their accounts or, if they eventually represent, are fully focused on their social goals rather than on their own profits.
It should be remembered that the fact that such institutions are immune to irpj does not give them other obligations. They will continue to pay other taxes and must remain within the rules to ensure that they are helarized.
What if your company can be exempt from IRPJ?
If your company meets the exemption requirements, it is necessary to comply with the requirements of Law 9532 of 1997, Article 12. For example, educational and social welfare agencies are not allowed to present their leaders in any way. Your income should be totally alused to your social goals. In addition, you need to:
- Maintain official records of activities, income and expenses;
- Keep for at least five years, documents confirming all your income and expenses;
- Submit your annual earnings report;
- Compliance with social security obligations for workers (among others);
- In the case of registration, merger, separation or closure of its activities, distribute its assets to a public institution or other institution that is also not immune;
- meet other requirements that are specific to your segment, state, or city, for example.
It is worth remembering that institutions such as churches Temples and political parties should submit their tax accounting (ECF) as well as others.
What is the importance of the accountant in this process?
The assistance of this professional is important for both freed and non-lighting companies. In the first case, the accountant will determine whether your entity is inviative, considering the laws in a more complex and profound way. It will also help to keep documents, reports, expenses and income, leave them in accordance with the standards.
In the case of non-tax-exempt companies, the accountant will be responsible not only for the financial organization, but also for the payment of income tax for legal entities.
In addition, an accountant can assist you and your employees in preparing income tax for individuals.
IRPJ is a subject that can scare many entrepreneurs, especially beginners. We cannot deny, in fact, that this is an extensive issue riddled with different laws and conditions. However, he should not face such fear or headache. Whether it is absolved of responsibility or not, there are ways to facilitate the process, such as proper research, information and, mainly, the support of qualified professionals.
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