Whalerho
11/28/2009 13:43 EST
Hello,
I have been made an offer for a job in Brasil and would like to know what type of salary deductions I might expect and what these would cover. Understanding that like the US, there might be a sliding scale based upon income levels, my salary would be in the range of >R$200K.
Thanks in advance
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travelr64
12/7/2009 08:36 EST
Sorry I don't have time to look through here and find the info right now, but it's in here somewhere. Also, your employer should be able to tell you this with no problem.
http://www.mte.gov.br/institucional/mapa_site.asp
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espanol3
1/5/2010 22:17 EST
You should definitely look into this as brazil loves to tax and Lord only knows where the money goes!.....If you are going to be an "expatriate", then you should be entitled to a 86,000 us or more as income from overseas work exclusion on your usa tax return but you must ascertain if you are indeed an "expat" for usa income tax purposes!.....The reason I mention this is because there is no tax treaty between usa and brazil , so both countries normally tax "worldwide income" but one gets a tax deduction on what one pays to the other country.....This is the case in france and other countries also.....As I said, look into this well especially if you are going to earn big money in brazil.....Boa Sorte!
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mrsomerset
5/2/2010 18:46 EST
Hi, the first thing to understand is that salary in Brazil is stated in monthly terms as opposed to the US where it is annual. If you plan to make around R$ 200k per year that's about R$ 16,7k per month considering only 12 months. However, since by law all employees receive 13 salaries, it would be closer to R$ 15,4k per month (I assume you will be hired as an employee).
There are three principal payroll taxes in Brazil:
* FGTS
* INSS
* IR
FGTS = Fundo de Garantia do Trabalhador. It's kind of like a retirement fund. It's 8% on top of your salary and paid strictly by your employer - so nothing for you to worry about. Depending on the nature of your contract, you can cash this out later.
INSS = social security tax. It's paid mostly by the employer (about 28% on top of your salary!). There is a small portion that is deducted from your salary to, up to a maximum of R$ 375,82 per month currently. Given the salary assumptions above, the maximum will be deducted.
IR = income tax.This is similar to in the US in that it has deductibles and increasing marginal rates. It is borne entirely by the employee. The highest marginal rate currently is 27,5% and you will have much of your income taxed at that level since it starts at R$ 3.700 per month.
I ran some quick calcs and I see a salary of R$ 15,4k with an INSS deduction of R$ 375,82 and IR of R$ 3.397,43, generating an after-tax income of R$ 11,6k (total tax burden of about 25%). FGTS credit would R$ 1.232.
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mrsomerset
5/2/2010 18:48 EST
One other thing to note - benefits will have sort of a co-pay deduction in your salary, too. How much is deducted depends on your employer's policies. You can expect deductions for your health plan and monthly meal tickets (yes, ALL employees get them). Typically, these deductions are not significant.
Ah, and lest I forget, you will have union dues deducted from your salary (yes, ALL employees are forced into a union). I can't recall exactly, but it's something like a few days of salary at some point during the year.
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barzeroti
5/3/2010 12:32 EST
Make sure first your offer is real and on papers, have seen a lawyer to make sure?
Brazilian in general are NOT to be trusted
Ne very careful
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