What is the difference between IRS and IRC?

The difference between IR and IR lies in the type of taxpayer and the nature of the taxed income. Here is the explanation in a clear and direct way:

IRS – Personal Income Tax

• Applies to: Individuals (natural persons and self-employed individuals).

• Taxes: Personal income, obtained through dependent work (salaries), self-employment (provision of services), real estate income, capital, pensions, among others.

• Calculation basis: Taxpayer's overall income, divided by categories (A, B, E, F, G, H).

• Progressive: The more you earn, the higher the applicable rate (income brackets with increasing rates).

Examples: An employee, an individual doctor, or a landlord renting a property.

IRPJ – Corporate Income Tax

• Applies to: Legal entities (companies, societies, cooperatives, associations, foundations, etc.).

• Taxes: The company's taxable profit — that is, the income obtained minus the costs and expenses accepted for tax purposes.

• Fixed rate: The general IRPJ rate is 21%, which may be increased by municipal and state surcharges.

• Annual assessment: The company presents the accounts for the year (profits and losses), and tax is applied to this result.

Examples: A limited company (Lda), a SA or an agricultural cooperative.

Resume

Feature	IRS	IRPJ
Applies to:	Individuals	Legal entities
Taxed income:	Personnel (salaries, rent, services)	Profit from business activity
Rate Type:	Progressive (up to 48%)	Fixed (21% + surcharge)
Example of taxpayer:	Worker, liberal professional	Company, business society

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