Choosing the tax regime is the most impactful fiscal decision in a company’s life — and it must be revisited annually, in October/November, before the start of the following year. The three possible regimes (Simples Nacional, Presumed Profit, Actual Profit) have completely different calculation bases, rates and rules. The wrong choice can cost several percentage points of margin. For growing or transitioning companies, the analysis is especially critical.
The three tax regimes
| Regime | Revenue threshold | Typical federal taxation | General indication |
|---|---|---|---|
| Simples Nacional | Up to BRL 4.8M/year | 4% to 33% (aggregate rate) | SMEs with B2C end customers |
| Presumed Profit | Up to BRL 78M/year | ~11.3% (services) to ~5.9% (commerce) on revenue | High margins (>20% in commerce, >30% in services) |
| Actual Profit | No limit | 34% on profit + non-cumulative PIS/COFINS | Low margins, loss, or revenue > BRL 78M |
When Presumed beats Actual Profit
Presumed Profit is taxed on gross revenue (not on profit). It is advantageous when the effective operating margin is higher than the margin presumed by law: 8% for industry/commerce and 32% for services.
Numerical example
A services company with a real margin of 50%:
- Actual Profit: IRPJ/CSLL 34% on 50% = 17% burden
- Presumed Profit: IRPJ/CSLL ~17% on 32% (presumed) = ~5.4% effective + cumulative PIS/COFINS 3.65% = ~9% total
Typical gain: 5-8 percentage points of margin.
Cumulative PIS/COFINS under Presumed
Presumed has cumulative PIS/COFINS at 3.65% (vs 9.25% non-cumulative under Actual Profit). For companies with few creditable inputs (professional services), the difference is significant — because under Actual Profit, paying 9.25% without taking much credit ends up more expensive than 3.65% cumulative.
When Actual Profit beats Presumed
Actual Profit is mandatory above BRL 78M and for some specific activities (financial, factoring). It is advantageous by choice when:
- The operating margin is low or a loss (Actual Profit taxes the real profit, Presumed taxes revenue)
- There is a large volume of creditable inputs in PIS/COFINS
- The company needs to amortize accumulated tax losses (limited to 30% in usage, but it exists)
Actual Profit: annual vs quarterly
Within Actual Profit, there are two modalities:
- Annual Actual — annual assessment with monthly estimate. Greater flexibility in offsetting losses across quarters of the same year.
- Quarterly Actual — definitive assessment per quarter. Less flexibility but can be better in seasonal operations.
Most mid-market companies opt for the annual one.
Simples Nacional — when it is worth it
Simples Nacional unifies IRPJ, CSLL, PIS, COFINS, IPI, ICMS, ISS and employer INSS into a single payment (DAS). Threshold of BRL 4.8M/year.
It is worthwhile especially for:
- Companies with an individual end customer (B2C)
- Revenue below BRL 1M/year (initial brackets with a low rate)
- A simple operation without high fiscal complexity
Critical note: with the Tax Reform, Simples B2B companies must decide in September/2026 whether to remain or opt for the regular IBS/CBS regime. See Simples Decision 2027.
Annual decision timeline
- Sep/Oct: Diagnosis — analysis of the current year’s results vs alternative scenarios
- Nov: Technical decision — quantitative modeling, validation against precedents, document preparation
- Dec: Implementation — corporate acts, regime change in the CNPJ (if necessary), communication to the team
- Jan: Start of the new regime — first assessment
Wrong decisions can cost up to 10 percentage points of margin in extreme cases. Careful modeling is worth it.
Tax regime diagnostic — free
Quantitative modeling across Actual Profit, Presumed Profit and Simples for your company. Analysis of the current year + projection of the next 12 months + technical recommendation.
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