Presumed Profit Regime — a simplified regime (Lucro Presumido)
The presumed profit regime (Lucro Presumido) assesses IRPJ (corporate income tax) and CSLL (social contribution on net profit) on a fixed deemed percentage of gross revenue, available to companies with annual revenue of up to BRL 78 million. It simplifies tax accounting and dispenses with the detailed tracking of deductible expenses.
Presumption percentages
IRPJ is levied on a deemed base calculated as a fixed percentage of gross revenue, by activity:
- 1.6% — fuel resale;
- 8% — general trade, industry, cargo transport;
- 16% — passenger transport, hospital services;
- 32% — general services (consulting, legal services, regulated professions, intermediation).
For CSLL, the percentages are: 12% (trade/industry) or 32% (services). On this deemed base, the rates applied are 15% IRPJ + a 10% surtax on the portion exceeding BRL 60k/quarter + 9% CSLL.
When the presumed profit regime is worthwhile
The presumed profit regime tends to be advantageous when:
- The effective margin exceeds the presumption percentage: an industrial company with a 20% margin vs. an 8% presumption pays less under the presumed profit regime;
- Low costs / high revenue: a software company with few creditable inputs;
- Operational simplicity is valued: exemption from the non-cumulative SPED Contribuições filing, a simpler ECF.
It is not worthwhile when:
- The real margin is lower than the presumption percentage (the company pays IRPJ on a higher profit than it actually earned);
- There are tax loss carryforwards from prior periods (which cannot be offset under the presumed profit regime);
- PIS/COFINS under the cumulative regime (3.65%) with no right to credit penalizes a company with many inputs.
Reform alert: the CBS transition may materially affect service companies under the presumed profit regime — the effective CBS rate (~8.8%) with no relevant credits may double the current PIS+COFINS cumulative burden. Pre-2027 modeling is critical — see our Simples Decision 2027 service.
Frequently asked questions about the presumed profit regime
What is the difference between the actual and presumed profit regimes?
The actual profit regime assesses IRPJ/CSLL on actual profit (revenue minus deductible expenses, with adjustments). The presumed profit regime assesses them on a deemed base (a fixed percentage of gross revenue). The actual profit regime requires full accounting bookkeeping (ECD + ECF) and the non-cumulative SPED Contribuições. The presumed profit regime accepts simplified bookkeeping and cumulative PIS/COFINS. The actual profit regime is mandatory above BRL 78M/year; the presumed profit regime is optional for companies below that threshold.
What is the total effective rate under the presumed profit regime?
It depends on the activity. For services (32% presumption): the total effective rate is ~16.33% (IRPJ 4.8% + CSLL 2.88% + PIS 0.65% + COFINS 3% + ISS, the municipal service tax, variable at 2-5%). For trade (8% presumption): ~6.53% (IRPJ 1.2% + CSLL 0.72% + PIS 0.65% + COFINS 3% + ICMS, the state goods tax, variable). Comparing with the actual profit regime or Simples Nacional requires modeling by revenue line.
Can a professional services firm elect the presumed profit regime?
Yes, provided it respects the BRL 78M/year limit. Firms of lawyers, doctors and engineers frequently elect the presumed profit regime — a service activity has a 32% presumption, yet it can still be more advantageous than the actual profit regime for high revenue. The Tax Reform (CBS at 8.8% with no credit) tends to disfavor this profile — modeling in 2026-2027 is essential.
Can profits from the presumed profit regime be distributed without withholding?
Yes. The distribution of profits to individual shareholders is exempt from income tax (Law 9.249/95). Under the presumed profit regime, the limit for the exempt distribution is the presumed profit (not the book profit), unless there is regular accounting bookkeeping demonstrating a higher profit. It is advisable to keep the ECD even under the presumed profit regime to allow distribution above the presumed limit without withholding.