The government of Brazil has again increased the gross income limit for companies to opt for taxation under the presumed profit regime. Companies electing to use the presumed profit method are taxed on a statutory rate applied to their gross revenue.
According to Law No. 12,814, published in the “Official Gazette” of 17 May 2013, a company whose total gross revenue in the preceding year was less than or equal to BRL 78 million may opt for taxation based on deemed income. If the company was not active during the whole of the accounting year this limit may be reduced accordingly. The new limit will be effective as of 1 January 2014.
