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Brazil vs Panama
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

πŸ‡§πŸ‡· Brazil
vs
πŸ‡΅πŸ‡¦ Panama
Tax Year:

πŸ’° Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country β€” side by side.

Enter your annual income above to see your personal tax comparison β†’
Individual Income Tax (Top Marginal Rate)
Top Income Tax Rate
0–27.5%
Zero-rate up to R$5,000/mo fully effective
No change
0–25%
Territorial system; no plans to change
No change
VAT / GST / Sales Tax
VAT / GST / Sales Tax
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
β–Ό -0.5pp vs 2025
7%
7% maintained
No change
Corporate Tax Rate
Corporate Tax Rate
34%
34% maintained; reform discussions ongoing
No change
25%
25% standard; Panama removed from grey lists
No change
Capital Gains Tax
Capital Gains Tax
15–22.5%
Offshore income now fully captured
No change
10%
10% CGT maintained
No change
Social Security & Payroll
Social Security / Payroll
~36%
Payroll simplification proposals ongoing
No change
~22.1%
CSS pension reform implementation
No change
State, Regional & Local Taxes

πŸ‡§πŸ‡· Brazil β€” State & Municipal Taxes

Brazil has one of the world's most complex tax systems. States levy ICMS at 7%–18% varying by state. Municipalities levy ISS (services tax) at 2%–5% and IPTU (urban property tax). A sweeping tax reform (EC 132/2023) is gradually replacing ICMS/ISS with unified IBS and CBS taxes through 2033. States impose ITCMD (inheritance/gift tax) up to 8%.

πŸ‡΅πŸ‡¦ Panama β€” Municipal & Corregimiento Taxes

Panama's 10 provinces and 81 districts have municipalities that levy commercial licence fees (Tasa Unica), property tax (impuesto de inmuebles at 0%–2.1%), and service fees. Panama City has the highest commercial licence fees. Panama uses a territorial tax system β€” income earned outside Panama is not taxed. This has made Panama a significant financial and trading hub. The ColΓ³n Free Zone is the world's second largest free trade zone. Panama is working to exit FATF grey lists and improve tax transparency.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

Brazil vs Panama: Key Tax Differences (2026)

πŸ’° Income Tax: πŸ‡§πŸ‡· Brazil has a higher top income tax rate (0–27.5% vs 0–25%). πŸ‡΅πŸ‡¦ Panama is more favourable for high earners.

πŸ›’ VAT/Sales Tax: Brazil has a higher consumption tax (~27.5% combined vs 7%).

🏒 Corporate Tax: πŸ‡΅πŸ‡¦ Panama offers a lower corporate rate (25% vs 34%), which can influence business location decisions.

πŸ“ˆ Capital Gains: πŸ‡΅πŸ‡¦ Panama taxes investment gains at a lower rate (10% vs 22.5%), benefiting investors.

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