Lucro Presumido explained for foreign-owned companies
Guilherme Chambarelli
Published on
3 min read
In this article
Lucro Presumido (deemed profit) is a Brazilian corporate income tax regime in which IRPJ and CSLL are calculated on a fixed percentage of gross revenue, not on actual profit. It is available to companies with annual revenue of up to BRL 78 million that are not required to use Lucro Real, and it is open to foreign-owned companies. It tends to be attractive when real margins are higher than the deemed percentages and the operation is simple.
Key points
- Taxable profit is a percentage of revenue: typically 8% for goods and 32% for services (IRPJ).
- Since 2026, these percentages are 10% higher on annual revenue above BRL 5 million (Complementary Law 224/2025).
- Calculation is quarterly, with lighter bookkeeping than Lucro Real.
- Losses cannot be used, which matters for start-up phases.
- Until 2026, PIS and Cofins are cumulative; from 2027, CBS applies with full credits.
Who can use Lucro Presumido?
Companies with gross revenue of up to BRL 78 million in the previous year (proportionally for partial years) may opt for Lucro Presumido, unless they fall into a mandatory Lucro Real case. Mandatory cases include financial institutions, companies with profits, income or capital gains from abroad, companies enjoying certain tax incentives and factoring companies. Having a foreign parent does not, by itself, prevent the option. A subsidiary that receives income from abroad, however, will usually be pushed into Lucro Real.
How is the tax calculated?
| Activity | Deemed profit for IRPJ | Deemed profit for CSLL |
|---|---|---|
| Sale of goods and manufacturing | 8% | 12% |
| Most services, including consulting and software services | 32% | 32% |
| Passenger transport | 16% | 12% |
| Fuel resale | 1.6% | 12% |
IRPJ is charged at 15% on deemed profit, plus a 10% surtax on the portion above BRL 60,000 per quarter. CSLL is charged at 9%. Capital gains and financial income are added in full to the base.
What changed in 2026?
Complementary Law 224/2025 increased the deemed-profit percentages by 10% in relative terms (for example, 32% becomes 35.2% and 8% becomes 8.8%) on the portion of annual gross revenue that exceeds BRL 5 million. The increase applies from January 2026 for IRPJ and from April 2026 for CSLL. Some taxpayers are challenging it in court. Companies close to or above BRL 5 million in revenue should rerun the comparison with Lucro Real.
When does Lucro Presumido make sense for a foreign-owned company?
- Good fit: service companies with high real margins, low costs and few deductible expenses; trading companies with stable margins above the deemed percentages.
- Poor fit: companies with losses in the first years, low-margin operations, heavy costs charged by the parent, or income from abroad.
- Transfer pricing: the OECD-aligned rules of Law 14,596/2023 still apply to cross-border transactions with related parties.
How are profits distributed?
Under Lucro Presumido, companies may distribute, as a rule, the deemed profit net of taxes, and more than that if full accounting records show higher profit. Since 2026, dividends paid abroad are subject to 10% withholding under Law 15,270/2025, subject to tax treaties, and dividends above BRL 50,000 per month paid to the same resident individual are also subject to 10% withholding.
What happens with the 2027 tax reform?
The reform does not change the income tax rules of Lucro Presumido. What changes is the consumption tax side: today, Lucro Presumido companies pay PIS and Cofins under the cumulative system, without credits. From 2027, CBS replaces both and allows broad credits for all regimes. This removes a historical disadvantage of Lucro Presumido for companies with significant purchases.
Frequently asked questions
When is the option made?
With the payment of the first quarterly tax of the year. It applies to the whole calendar year.
Is Lucro Presumido allowed for a company whose only partner is a foreign entity?
Yes, provided the company is not in a mandatory Lucro Real case.
Is accounting still required?
Yes. Simplified records are allowed for tax purposes, but corporate law and dividend distributions above the deemed profit require full accounting.
How Chambarelli Advogados can help
Our Corporate Taxation team and our Foreign Desk compare regimes with real figures and support foreign-owned companies in their annual choice. Book a meeting with one of our partners.
Informational content, updated October 2026. It does not replace advice on your specific case.
