Complete Guide to Paying Taxes at Hotels in RJ 1
NotíciasDicas para Hotelaria

Tax Guide for Hotels in RJ – Everything you need to know

Tax Guide for Hotels in RJ – Everything you need to know (expected reading: 15m)

If you own a hotel in Rio de Janeiro, you know that managing taxes can be a challenge. But do not worry! This complete guide is here to simplify the entire process for you. Let's dive into the details so you can rest easy and focus on providing a great experience for your guests.

1. Introduction

When it comes to running a hotel in Rio de Janeiro, it is essential to understand the taxes you must pay. This guide was created to simplify everything for you so you can navigate the world of taxes with confidence and clarity.

2. Types of Taxes

Service Tax (ISS)

O Service Tax (ISS) It is essential for anyone who manages a hotel in Rio de Janeiro. This municipal tax is directly levied on the provision of services. For hotels, this includes lodging, food provided to guests, laundry services, and any events or conferences held within the establishment. The ISS percentage may vary depending on the location of the hotel and the specific type of service provided. Therefore, it is crucial to pay attention to city hall rates and regulations.

Urban Land Property Tax (IPTU)

Urban Land Property Tax (IPTU) It is charged annually and is based on the market value of the property assigned by the Municipal Finance Department, in accordance with the Generic Value Plan. In Rio de Janeiro, IPTU can be a significant cost, especially for hotels located in valued areas, such as the seafront. However, hotels have a tax discount of 40% if: (i) all debts on the property are paid off by November 30th of the previous year; and (ii) the tax for the year in question is paid by the last business day of November. It is important to pay attention to the tax payment deadlines in order to take advantage of the discount provided for in Rio's municipal legislation.

Furthermore, as it is a tax with a significant value, it is possible to seek strategies to reduce the market value assigned by the Municipal Finance Department and, consequently, reduce the value of the Tax charged annually.

Corporate Income Tax (IRPJ)

Corporate Income Tax (IRPJ) affects the profits of companies, including hotels. There are different calculation regimes for IRPJ, such as real profit, presumed profit and Simples Nacional. Each regime has its own rules and rates. It is essential that the hotel owner chooses the tax regime that best suits his business, in order to optimize the tax burden.

Social Integration Program (PIS)

Social Integration Program (PIS) It is a federal contribution paid monthly by companies based on their revenue. For hotels, PIS is calculated on gross revenue, and the rate may vary depending on the tax regime adopted. This contribution is used to finance workers' rights, including unemployment insurance, bonuses and participation fees.

Contribution to Social Security Financing (COFINS)

Contribution to Social Security Financing (COFINS) It is also a federal contribution that is levied on companies' revenue and, like PIS, is calculated based on gross monthly revenue. The resources collected by COFINS are intended to finance social security, which includes social security, public health and social assistance.

Tax on Circulation of Goods and Services (ICMS)

Tax on Circulation of Goods and Services (ICMS) is a state tax associated with the circulation of goods. Therefore, it will only be relevant for hotel managers if their food and beverage (F&B) supply activity is not included in the daily accommodation rate, in which case only the ISS will be charged.

Therefore, in a case in which the food supply activity is highlighted and, therefore, not included in the daily rate related to the provision of the accommodation service, it is necessary for the taxpayer to determine, declare and pay the ICMS due to the state tax authorities.

It is also important to highlight that, within the State of Rio de Janeiro, tips intended for workers' remuneration do not form the ICMS calculation basis, except in cases where the percentage charged exceeds 10%. In this case, the revenue arising from the percentage that exceeds 10% must be included in the calculation of the tax calculation base.

In relation to companies opting for Simples Nacional, the possibility of excluding such funds must be observed with caution, preferably based on judicial authorization, since, although the majority of decisions are favorable, there is still no express guidance in this regard. formulated by the Management Committee, which may increase the risk of fines.

Finally, it is interesting to remember that bars, restaurants and other establishments classified under codes 5611-2/01, 5611-2/02 and 5611-2/03 can adhere to the presumed ICMS credit regime of Decree No. 47,834/2021 of the State of Rio de Janeiro to enjoy special and more beneficial taxation, as long as they do not opt for Simples Nacional.

3. Tips for Tax Management

Keep detailed records: To avoid problems with the Tax Authorities, it is essential to keep accurate and detailed records of all the hotel's financial transactions, including income and expenses. This makes it easier to calculate taxes correctly and ensures that all possible deductions are applied. Furthermore, in the event of a possible municipal inspection, up-to-date accounting records make it easier to question any arbitrariness that may be pointed out.

Meet payment deadlines: One of the simplest ways to avoid penalties and interest is to strictly adhere to tax payment deadlines. Use tax calendars and reminders to ensure all payments are made on time.

Professional consultancy: Hiring an accountant specialized in hotel taxation and tax legal advice can be excellent investments. These professionals, working together, can provide personalized and broad guidance on the main aspects that govern complex tax legislation. The benefits range from assistance in correctly complying with tax obligations, in choosing the tax regime that appears most advantageous, as well as in the preparation of more complex tax plans, which improve and optimize the operation, combined with reducing the tax burden.

Use of financial management software: Software tools can automate many aspects of financial management, making the tax payment process more efficient and less prone to errors. Additionally, these software can generate detailed financial reports, making it easier to make informed decisions.

Keep up to date with changes in legislation: Tax laws can change frequently, and it is important to always be informed about these changes to avoid unpleasant surprises. Attending workshops, seminars and refresher courses can be very helpful.

4. Conclusion

Managing hotel taxes in Rio de Janeiro may seem like a complicated task, but with the right approach, it is possible to simplify this process. Understanding the different types of taxes and their respective rates, maintaining good financial organization and seeking professional assistance are fundamental steps to ensuring that your hotel complies with all tax requirements. This way, you can focus on what really matters: offering an incredible experience to your guests.

5. FAQ

1. How are hotel service taxes calculated?

The service tax (ISS) is calculated based on the value of the service provided by the hotel, be it accommodation services, events or congress services. The rate in the city of Rio de Janeiro is 5%, and may vary between different municipalities, as it is a municipal tax.

2. What is the difference between IPTU and ISS for hotels?

IPTU is a tax on urban property, charged annually based on the market value of the property assigned by the Municipal Finance Department. The ISS is levied on the provision of services and is calculated based on the value of the operation of these services, be it hotels or events.

3. How can I reduce my tax burden as a hotel owner?

To reduce your tax burden, you can take advantage of tax incentives, choose the most appropriate tax regime, keep detailed records of all deductible expenses and seek guidance from a specialized accountant and legal counsel.

4. What are the penalties for late payment of hotel taxes?

Delay in paying taxes can result in fines, interest and, at the limit, judicial and extrajudicial charges (through protests via notary offices) by the Tax Authorities. Penalties, which may vary depending on the nature of the tax and the period of delay, are extremely harmful to business activity and should be avoided. Legal advice from a team specialized in Tax Law can be a good tool to preserve the health of hotels and other companies.

5. How do I know if I'm paying taxes correctly as a hotel owner?

To ensure the correct payment of taxes, it is essential to have the help of a specialized accountant, stay up to date with tax laws and use financial management software that helps control and automate tax processes. Furthermore, hiring legal advice can assist in the application of complex tax legislation specifically to your hotel, always aimed at making the most of opportunities arising due to legislative and/or jurisprudential changes.

By following these guidelines and maintaining efficient financial management, you will be able to manage your hotel smoothly and in compliance with all tax obligations, ensuring the sustainability and success of your business.

6. What taxes do Hotels pay?

  • Service Tax (ISS)
  • Urban Land Property Tax (IPTU)
  • Corporate Income Tax (IRPJ)
  • Social Integration Program (PIS)
  • Contribution to Social Security Financing (COFINS)
  • Tax on Circulation of Goods and Services (ICMS)

Conclusion / Next Steps

Now that you are more informed about the taxes that apply to hotels in Rio de Janeiro, it is time to take concrete measures to ensure that your tax management is efficient and successful.

Did you know that you can count on specialized assistance from HotelsRio/ABIH-RJ? As a union/association representing the hospitality industry, we are here to help you navigate the complex world of taxes. Furthermore, through a qualified technical team, we constantly fight with the main economic and political actors in the segment to maintain/grant discounts and tax benefits for our members.

Do not waste time! Join now and enjoy all the benefits we offer to facilitate the payment and collection of your hotel taxes. Together, we can build a more prosperous future for Rio de Janeiro's hotel sector.

Visit: abihrj.com.br/associe-se

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