Assumed profit is the name given to a type of taxation related to legal entities (companies), that is, it is a type of calculation used as a basis for charging a tax.
It is called assumed because the calculation is made from a pre-fixed and approximated profit value, not necessarily corresponding to the company's actual profit value.
The presumed profit is used for legal entities, being the calculation basis for the Corporate Income Tax (IRPJ) and for the Social Contribution on Net Income (CSLL) of the companies.
How is the assumed profit calculated?
To calculate the presumed profit index, standardized percentages are used, previously defined by the law on the values that correspond to the company's gross operating revenue (ROB). Gross operating revenue corresponds to the amount received from the sale of the company's services or products.
The amount of tax to be paid varies, calculated according to the type of activity of each company.
How can a company opt for assumed profit?
The main requirement that defines whether or not a company can be included in this tax category is the amount of its annual turnover. In the case of presumed profit, the billing cannot exceed
BRL 78 million per annum.The option for taxation in this category must take place at the time the company is incorporated. If a company has not opted for the presumed profit or wishes to switch to another tax regime, it can make the change at the beginning of the fiscal year.
What are the taxes paid on presumed profit?
Four taxes are paid on presumed profit: Income Tax - Legal Entity (IRPJ), Social Contribution on the Net Income (CSLL), Social Interaction Program (PIS) and Contribution to Social Security Financing (COFINS).
Income Tax - Legal Entity (IRPJ)
The IRPJ is calculated quarterly, that is, every three months. As a rule, it must be paid in a single installment until the last business day of the month following the period calculated. The pre-defined dates for calculation are: March 31, June 30, September 30 and December 31.
IRPJ rates vary between 1.6% and 32% on the amount of the company's billing. In order to facilitate the calculation, the tax table related to the presumed profit should be used. To calculate the IRPJ, the following indexes are used:
| IRPJ rate | Type of company activity |
|---|---|
| 1,6% | Companies that sell fuel or natural gas |
| 8% | All companies that do not fit into the other categories |
| 16% | Companies that provide transport services (except freight transport) or general services up to gross revenue of R$ 120 thousand per year |
| 32% | Companies that carry out business or administration services, rental of real estate, furniture, assignment of rights or provision of services |
Social Contribution on Net Income (CSLL)
The Social Contribution on net income is also calculated every three months, in the percentages of 12% or 32%. The following indexes are used to calculate CSLL:
| CSLL rate | Type of company activity |
|---|---|
| 12% | All companies that do not fit into the category below |
| 32% | Companies that carry out business or administration services, rental of real estate, furniture, assignment of rights or provision of services |
Social Interaction Program (PIS) and Contribution to Social Security Financing (COFINS)
PIS and COFINS, unlike IRPJ and CSLL, are calculated each month on the value of the company's gross revenue. For PIS the rate of 0.65% per month is used and for COFINS it is 3% per month.
Both are social contributions. PIS is used to pay unemployment insurance and salary bonuses. COFINS is used to finance Social Security activities, which include Public Health, Social Security and Social Assistance.
What is the difference between assumed profit and actual profit?
Both the presumed profit and the actual profit are forms of taxation for purposes of payment of corporate tax. The difference between the actual and the assumed profit is related to the calculation of the amount referring to the company's profit.
In the presumed profit, the calculation is made based on a previously established value, which does not indicate the real value of the company's profit.
In actual profit, the value used corresponds to the company's net profit, which is defined after two calculations are made.
Read more about the Real profit.
First, the company's total revenue during the year is calculated, that is, what is the total amount received from the sale of products or the provision of services. From this amount, expenses and other costs of the company are deducted. The amount resulting from this account is the company's actual profit, which will be used as the basis for calculating the taxes due.
know more about PIS and COFINS and also see the meanings of Profit, Tax and Income tax.