COFINS (Contribuição para o Financiamento da Seguridade Social)

COFINS (Contribuição para o Financiamento da Seguridade Social) is a Brazilian tax levied on companies’ gross revenue to fund social programs like healthcare, social security, and welfare. It applies to most business activities and is calculated as a percentage of sales. The goal is to generate revenue to support the country's social security systems, ensuring public health and social support services are maintained. Companies collect this tax from their customers as part of the sale process and then remit it to the government. It is a key component of Brazil’s approach to social financing through taxation.