Federal tax collection in Brazil reaches US$39 billion in October, the highest in 22 years

Brazil’s total federal revenue collection reached R$205.5 (about US$39) billion in October 2022, a real increase (IPCA) of 7.97% compared to the same period last year.

In the accumulated period between January and October 2022, the collection hit the amount of R$1.8 trillion, an increase of 9.3%, according to data released on Tuesday (Nov. 29) by the IRS.

According to the agency, this was the best collection performance since 2000, both for the month of October and for the accumulated period.

“As for the revenues administered by the IRS, the amount collected in October 2022 was R$ 185.2 billion, representing a real increase of 7.39%, while the accumulated period from January to October 2022, the collection reached R$1.7 trillion, with a real increase (IPCA) of 7.62%,” says the agency.

According to the IRS, the increase can be explained mainly by the growth in collections of Corporate Income Tax (IRPJ) and Social Contribution on Net Income (CSLL), which is levied on corporate profits.

According to the IRS, they are important indicators of economic activity, especially the productive sector.

The IRPJ and CSLL totaled a collection of R$53.88 billion, with real growth of 13.01% compared to the same month in 2021.

This result is explained by the real increase of 11.24% in collecting the monthly estimate for companies.

In the monthly estimate, the taxable income will be calculated annually, and the company must collect the monthly tax, calculated on an estimated basis.