# What is ISS (ISSQN)?

Country: Brazil

ISS is the municipal tax on services. Each municipality sets its rate within the national range and its own rules for invoices and payment.

## 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.

Source: https://www.egov.df.gov.br/wp-content/uploads/2019/04/Manual-do-ISS.pdf

## Related terms

- [ICMS](https://accounts-os.com/br/glossary/icms-brazil)
- [NF-e and NFS-e](https://accounts-os.com/br/glossary/nf-e-brazil)
- [Simples Nacional](https://accounts-os.com/br/glossary/simples-nacional-brazil)