BRAZIL LAW AND PRACTICE Contributed by: Ricardo Barretto Ferreira da Silva, Ingrid Bandeira Santos, Sylvia Werdmüller von Elgg Roberto and Isabella da Penha Lopes, Azevedo Sette Advogados
es in Brazil. Companies operating in this sec - tor must manage several critical tax obligations, including: • ISS – the tax rate ranges from 2% to 5%, depending on the legislation of the municipal - ity where the service provider is located; • PIS and COFINS – (i) for non-cumulative taxpayers, rates are 1.65% and 7.6%, respectively, with the possibility of tax credits on specific expenses; and (ii) for cumulative taxpayers, the rates are reduced to 0.65% and 3%, respectively, but tax credits are not permitted; • cross-border digital advertising services – payments for services rendered by foreign providers to Brazilian customers are subject to (i) withholding income tax (WHT) at a rate of 15%, which may be reduced or exempted under a DTT; and (ii) tax on financial transac - tions ( impuesto sobre operaciones financieras IOF), levied at a rate of 0.38% on foreign exchange (FX) transactions. To navigate Brazil’s intricate tax regulations for digital advertising, companies should adopt the following best practices: • understand the applicable local tax rules; • maintain precise and organised financial and fiscal records; • seek advice from experienced tax profession - als; • invest in compliance technologies for rational tax management; and • stay informed about legislative updates that
the consumer relationship, covering both physi - cal and digital products and establishing funda - mental rights for consumers, such as the right to clear information, safety, quality and compensa - tion for damages. As for commercial transactions involving digi - tal goods and services, Decree No 7,962/2013 regulates e-commerce, requiring that infor - mation about products and services be clear, that customer service be easily available and establishing that the consumer has the “right to regret” (which is a legal guarantee that allows the consumer to withdraw from a purchase or ser - vice without justification within seven days). This right applies to off-premises purchases, such as those made online. With the advance of digitalisation, complemen - tary laws have also been introduced to protect consumers in the digital environment. The Civil Rights Framework for the Internet ( Marco Civil da Internet ; MCI) defines principles, rights and duties for internet use in Brazil. It protects net neutrality and user privacy and ensures access to quality services, establishing that online ser - vice providers are responsible for guaranteeing consumer security and privacy. In addition, the LGPD regulates the processing of consumers’ personal data and guarantees transparency of the practices of companies in the digital sector. The LGPD requires clear con - sent for the collection and use of data, allow - ing consumers to access, correct or request the deletion of their information. For companies to ensure that consumer rights are respected in the digital economy, it is essen - tial that they adopt clear transparency policies and invest in efficient and accessible commu - nication channels. Companies must provide
may impact tax obligations. 1.4 Consumer Protection
In Brazil, digital products and services in the TMT sector are mainly regulated by the Con - sumer Defense Code (CDC), which applies to
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