Tax rates for authors residing in Brazil

Payments to individual authors (pessoa fisica) and legal entities (pessoa juridica) who reside in Brazil are subject to Brazilian tax withholding (IRRF) if the authors' monthly payment reaches the minimum threshold.
The Brazilian withholding tax rate will vary based on the total monthly payment amount. See the chart below for the monthly taxable bands and current corresponding withholding (applies for both: individual authors and legal entities).

Note: In February of 2024, the Brazilian government updated the rates for withholding taxes. The withholding income tax calculation has been updated accordingly. For more details, see the Receita Federal Tributação de 2024

Monthly taxable basis of tax due (in BRL)	Rate (in %)	Deduction (in BRL)
Up to 2.259,20	-	-
Between 2.259,21 and 2.826,65	7.5	169.44
Between 2,826.66 and 3,751.05	15	381.44
Between 3,751.06 and 4,664.68	22.5	662.77
Above 4,664.68	27.5	896

For example, if an author were to earn 5,000 BRL from sales in Amazon.com.br, the following are typical calculations made on those earnings:

IRRF = (basis * rate) - deduction
IRRF = (5,000 * 27.5%) - 884.96
IRRF = 1,375 - 896
IRRF = 479

The author would typically receive a net amount of 4,521 BRL (5,000 - 479 = 4,521 BRL).

Note:

• Individual authors (pessoa fisica) considered as Brazilian tax residents for tax purposes are subject to withholding tax even if the address of residence is no longer a Brazilian address.
• For Individual authors (pessoa fisica) there is a progressive income tax rates in payments
• For legal entities (pessoa juridica), there is no tax provision to apply Withholding Income Tax (WTH) on local royalties payment in a transaction between two legal entities

For more information, visit Receita Federal website:
For Individual authors
For Legal entities

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Tax rates for authors not residing in Brazil

For most countries of residence, a 15% withholding rate applies to sales made in the Brazilian marketplace for individual authors (pessoa fisica) and legal entities (pessoa juridica).
The following countries have an exceptional rate because: (i) they are classified as a favored taxing jurisdiction, also known as a tax haven, or (ii) because of lower tax rates under a treaty to avoid double taxation.