Working in Campinas?
Working in Campinas
With a GDP (PPP) of 36.68 billion BRL (2010), Campinas is the 10th richest city in all of Brazil, and the richest in its metropolitan region. It accounts for almost 1% of the total GDP for the entire country, and for around 10% of all of its industrial activity. Campinas' industrial sector is largely made up of petrochemical and metallurgy companies, as well as automobile manufacturing and textile production firms, and is the largest economic sector in the city. Agriculture is also very important to the local economy, with coffee, sugar cane, and cotton as its main crops. There is also a large service sector, which is based around tourism, retail, and high-tech industries like software production. The service sector has grown steadily in recent years, and has been boosted by the many new research and development centers located in the city, as well as Campinas' highly regarded universities. Expatriates working in Campinas tend to be employed in senior or technical positions in industry or software development, or as English teachers.
Work Permits for Campinas
Expatriates wanting to work in Campinas will need a work permit in order to do so. You will need to apply for a work permit separately from your residency visa (see above), and you should be advised that the process will usually take between two and three months to be completed. Before applying for a Brazilian work permit, you must have already secured work in Campinas, as your prospective employer will be required to submit an application first to the Ministry of Labor. Once this has been approved, you will then need to submit your own application to your local Brazilian embassy or consulate and in doing so you will need to provide a number of official documents, including your employment history, and you will need to undergo a medical examination. Permits for working in Campinas are temporary, and will need to be renewed on expiry.
Income Taxation in Campinas
Every person living and working in Campinas is required to pay income tax on their earnings, and that includes expatriates and foreigners. As an expatriate, the income on which you will pay tax at Brazilian rates depends on your residency status in the country. If you are classed as a resident for tax purposes, which means that you live and work in Campinas for more than 183 days in the fiscal year, then you will pay income tax at Brazilian rates on your worldwide income. If you live and work in Campinas for fewer than 183 days in the year, then you will pay income tax at Brazilian rates on your Brazilian income only.
Brazil has a progressive, sliding scale tax system, whereby your total income for the fiscal year determines the amount of income tax you will be required to pay. The income taxation rates for expatriates living and working in Campinas in 2015 are as follows:
- Less than 1,787.78 BRL per month — no income tax
- 1,787.78 BRL to 2,679.29 BRL per month — 7.5%
- 2,679.30 BRL to 3,572.43 BRL per month — 15%
- 3,572.44 BRL to 4,463.81 BRL per month — 22.5%
- Above 4,463.81 BRL per month — 27.5%