Tax on Services

A tax on services (imposto sobre serviço) must be paid by the self-employed. This tax is paid to the local authority (Prefeitura) of residence, or in some cases (in the field of construction) to the local authority where the construction work took place.

ISS is between two percent and five percent of the quoted and agreed price of a provided service. For example a taxi driver should pay two percent of the fare and a journalist or an information technology consultant would pay five percent of the service charge.

Some liberal professionals, such as psychologists, lawyers, doctors and dentists have an annual fixed ISS payment.