What is ISS (ISSQN)?
ISS is the municipal tax on services. Each municipality sets its rate within the national range and its own rules for invoices and payment.
Finn does your books in Brazil
AccountsOS keeps the books for Brazil businesses, tracks tax deadlines and handles invoicing, in plain English. Ask Finn about yours, no signup needed.
Current Rate (Monthly, on each municipality's calendar.)
Minimum 2%, maximum 5% (Lei Complementar 116/2003).
Example
A consultancy in a city with a 5% ISS rate charges R$500 of ISS on a R$10,000 service.
How ISS (ISSQN) works in Brazil
Services are invoiced with the NFS-e, now on the national standard. Simples Nacional companies pay ISS inside the DAS and an MEI pays a fixed R$5 a month. Under the reform, ISS is reduced from 2029 and extinguished in 2033.
Related terms
ICMS is the state tax on the circulation of goods and on interstate transport and communication services. Each state sets its own internal rates, dates and rules.
The NF-e is the electronic invoice for goods, authorised by the state SEFAZ. The NFS-e is the electronic invoice for services, now on the national standard. Both are mandatory, and AccountsOS issues neither.
The Simples Nacional is the single tax regime for micro and small companies with revenue up to R$4.8 million a year. One monthly DAS covers IRPJ, CSLL, PIS, COFINS, the employer social security contribution, ICMS and ISS.
Confused by Brazil accounting jargon?
AccountsOS explains Brazil terms in plain English and applies the right rules to your books automatically.
Try Free