# What is Lucro Real?

Country: Brazil

Lucro Real is the regime in which IRPJ and CSLL are charged on the actual accounting profit, as adjusted for tax. It is mandatory when revenue in the previous year was above R$78 million and open to anyone by choice.

## Current rate (Calendar year, calculated quarterly or annually with monthly estimates.)

IRPJ 15% plus the 10% surcharge, CSLL 9%. PIS and COFINS are usually non-cumulative (1.65% and 7.6%, with credits).

## Example

A company making a loss chooses Lucro Real so that it pays no IRPJ on a presumed profit it did not make.

## How Lucro Real works in Brazil

Under Lucro Real an operating expense is deductible when it is necessary, usual and normal for the business (RIR/2018 art. 311). The company must keep the ECD and file the ECF. The tax adjustments are the contador's work.

Source: https://www.planalto.gov.br/ccivil_03/_ato2015-2018/2018/decreto/d9580.htm

## Related terms

- [IRPJ (Brazil)](https://accounts-os.com/br/glossary/irpj-brazil)
- [Lucro Presumido](https://accounts-os.com/br/glossary/lucro-presumido-brazil)
- [PIS/COFINS](https://accounts-os.com/br/glossary/pis-cofins-brazil)