Pro-labore alone
- Input
- Pró-labore R$ 5.000,00
- Expected output
- Líquido R$ 4.450,00
INSS of 550.00 and zero income tax.
Carregando ferramenta… / Loading tool…
pro-labore vs profit distribution brazil
Pro-labore and profits are two different sources of income for the partner. Pro-labore is pay for work, with INSS and income tax. Distributed profits carry no INSS and, since 2026, have 10% withheld at source when a single company pays more than R$ 50,000.00 in a month to the same person.
INSS of 550.00 and zero income tax.
Profits under 50k, no withholding.
Withholding applies only above R$ 50,000.00.
10% on the whole amount, not only on the excess.
Above the ceiling INSS does not grow.
It is 11% of the pro-labore, capped at the contribution ceiling of R$ 8,475.55. On R$ 5,000.00 INSS is R$ 550.00. From R$ 8,475.55 upward the deduction stops growing and stays at R$ 932.31 a month, the maximum.
In theory a company can distribute profits without pro-labore, but a partner who works in the company loses social security contributions, and under Simples the payroll for the Fator R is zero. In practice, accountants commonly recommend some pro-labore for whoever manages. Confirm with yours.
Up to R$ 50,000.00 a month from a single company there is no withholding at source. Above that, 10% on the total. For yearly income above R$ 600,000.00 there is also the minimum tax. Profits from results up to 2025 approved by 31 December 2025 follow the old rule.
The withholding is by month and by payer. Paying R$ 40,000.00 in one month and R$ 40,000.00 in the next withholds nothing, but two payments in the same month are added together (art. 6-A, §2). The distribution must match real profit determined by the accounting.
What the partner takes out each month, before deductions.
Simples Nacional, Annexes I, II, III and V: the employer contribution is already in the DAS, no extra cost.
To work out the Fator R under Simples.
To add to pro-labore and check the withholding.
11% of R$5,000.00.
Zeroed by the Law 15.270 reduction table.
Employer INSS already inside the Simples DAS.
| Gross pro-labore | R$5,000.00 |
|---|---|
| Partner INSS11% of R$5,000.00 | - R$550.00 |
| Simplified discountTax base: R$4,392.80 | - R$607.20 |
| Income tax (IRRF)2026 table minus the reducer | - R$0.00 |
| Net pro-labore | R$4,450.00 |
| Gross pro-labore | R$5,000.00 |
|---|---|
| Employer INSS (20%)Included in the Simples DAS | R$0.00 |
| Total cost | R$5,000.00 |
| Total chargesINSS, income tax and employer INSS | R$550.00 (11%) |
Simplified estimate. Confirm the amount and the classification with your accountant.
See also:Simples NacionalCLT or PJNet salary