Many Brazilian entrepreneurs don’t realize that exporting services can bring tax benefits, reducing or eliminating certain taxes. If a business provides services to clients abroad, it may qualify for special tax incentives.
This article will explain how small businesses can save on taxes when exporting services and what requirements need to be met.
1. What Taxes Can Be Reduced or Exempted?
✔ PIS and COFINS Exemption – Businesses that export services don’t pay these social contributions.
✔ ISS Exemption (Municipal Service Tax) – Some cities offer ISS reductions for service exports.
✔ Lower Income Tax on International Revenue – Businesses can use tax treaties to avoid double taxation.
💡 Tip: For a service to be considered exported, the client must be abroad, and the payment must come from outside Brazil.
2. How to Qualify for Export Tax Benefits
✔ Step 1: Ensure your service is delivered to a foreign client with international payment.
✔ Step 2: Issue an NF-e with tax exemption codes for exported services.
✔ Step 3: Check with your city hall to confirm ISS exemptions.
✔ Step 4: Report international earnings correctly in your annual tax declaration.
3. Who Can Benefit?
✔ Freelancers and small businesses providing IT, design, consulting, marketing, and education services.
✔ Entrepreneurs working with clients in the U.S., Europe, and other countries.
✔ Companies registered under Simples Nacional or Lucro Presumido.
4. Final Thoughts
Exporting services allows small businesses to expand their client base while paying fewer taxes. By using available tax incentives, entrepreneurs can maximize profits while staying compliant with Brazilian tax laws.