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Philippines vs Brazil
Tax Rate Comparison

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

🇵🇭 Philippines
vs
🇧🇷 Brazil
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

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Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–35%
Final TRAIN phase; potential review by Congress
No change
0–27.5%
Zero-rate up to R$5,000/mo fully effective
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
12%
12% standard; no change
No change
~27.5% combined
IBS+CBS advancing; ICMS/ISS phasing out
-0.5pp vs 2025

Corporate Tax Rate

Corporate Tax Rate
20–25%
25% large; 20% small; Pillar Two for qualifying MNCs
No change
34%
34% maintained; reform discussions ongoing
No change

Capital Gains Tax

Capital Gains Tax
6–15%
6%/15% maintained
No change
15–22.5%
Offshore income now fully captured
No change

Social Security & Payroll

Social Security / Payroll
~16%
Universal health coverage push increasing PhilHealth rates
No change
~36%
Payroll simplification proposals ongoing
No change
State, Regional & Local Taxes

🇵🇭 PhilippinesLocal Government Unit (LGU) Taxes

The Philippines' 82 provinces, 146 cities, and 1,488 municipalities levy business taxes (1%–2% of gross receipts), real property tax, and fees. Cities can levy local business taxes at their own rates within national caps. The local business tax is a major compliance burden for businesses operating across multiple LGUs. The BIR (Bureau of Internal Revenue) administers national taxes. The Create Act (2021) significantly reformed corporate income tax rates.

🇧🇷 BrazilState & 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%.

⚠️ 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.

Philippines vs Brazil: Key Tax Differences (2026)

💰 Income Tax: 🇵🇭 Philippines has a higher top income tax rate (0–35% vs 0–27.5%). 🇧🇷 Brazil is more favourable for high earners.

🛒 VAT/Sales Tax: Brazil has a higher consumption tax (12% vs ~27.5% combined).

🏢 Corporate Tax: 🇵🇭 Philippines offers a lower corporate rate (25% vs 34%), which can influence business location decisions.

📈 Capital Gains: 🇵🇭 Philippines taxes investment gains at a lower rate (15% vs 22.5%), benefiting investors.

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