Actual Profit Regime — a tax regime (Lucro Real)
The actual profit regime (Lucro Real) assesses IRPJ (corporate income tax) and CSLL (social contribution on net profit) on the company's actual profit (revenue minus deductible expenses), adjusted by additions and exclusions provided by law. It is mandatory for revenue above BRL 78 million/year, for financial institutions, and for companies with foreign-source income.
When the actual profit regime is mandatory
- Annual gross revenue above BRL 78 million (or BRL 6.5 million/month on a pro rata basis).
- Financial institutions, banks, insurers, brokers, credit cooperatives.
- Companies with profits, income or capital gains arising from abroad.
- Beneficiaries of an IRPJ exemption or reduction (regional tax incentives — SUDAM/SUDENE).
- Companies that have made monthly payments by estimate.
- Factoring, securitization companies, and the development of residential real estate by construction companies.
Companies outside these scenarios may choose between the actual, presumed or Simples regimes — a strategic choice that materially affects the tax burden.
Assessment and the accrual basis
Under the actual profit regime, IRPJ (15% + a 10% surtax on the portion exceeding BRL 240k/year) and CSLL (9%) are levied on the adjusted book profit in accordance with tax law. The main adjustments:
- Additions: non-deductible expenses (gifts, administrative fines, certain non-operational vehicle costs);
- Exclusions: non-taxable income, tax loss carryforwards from prior periods (limited to 30% of profit);
- Offsets: INE (interest on net equity) — an ongoing discussion regarding its limitation under Bill 4.173/2023.
The assessment may be quarterly (the default) or annual with monthly estimates (a more flexible option for seasonal companies). PIS and COFINS under the actual profit regime follow the non-cumulative regime (rates of 1.65% + 7.6%, with a right to credit on inputs — STJ Theme 779).
Frequently asked questions about the actual profit regime
What is the total IRPJ + CSLL rate under the actual profit regime?
IRPJ is 15% on actual profit + a 10% surtax on the portion exceeding BRL 20k/month (BRL 240k/year). CSLL is 9% (15% for financial institutions). The combined nominal rate is 34% (a maximum 25% IRPJ + 9% CSLL). The effective rate varies depending on additions, exclusions and the offset of losses.
Is the actual profit regime always more expensive than the presumed one?
No. The actual profit regime can be more advantageous when: (1) the real margin is lower than the presumption percentage (e.g., trade with a 5% margin wins against an 8% presumption), (2) there are tax loss carryforwards to offset, (3) INE is distributed (deductible under the actual profit regime, not under the presumed one), (4) non-cumulative PIS/COFINS with broad credits. Case-by-case modeling is essential — there is no general rule.
Can a company switch from the presumed to the actual profit regime during the year?
The election of the actual profit regime is made on the first payment of the year (the DARF for the 1st quarter). After this election, the regime is definitive for the calendar year. A change occurs only at the start of the following year. Exception: companies that lose the requirements for the presumed profit regime (exceeding BRL 78M or otherwise becoming required) migrate automatically, with retroactive regularization.
How is the actual profit regime affected by the Tax Reform?
The actual profit regime (IRPJ/CSLL) is NOT changed by the Tax Reform — the Reform applies to consumption taxes (PIS/COFINS/ICMS/ISS, replaced by CBS/IBS). IRPJ and CSLL remain under the current model, with parallel discussions ongoing (Bill 4.173/2023 on INE). OECD Pillar 2 (Law 15.079/2024 — QDMTT) affects multinationals with global revenue above EUR 750M.