Actually using these values it should be closer to 60% as the states taxes is over the import tax and the federal tax. It should be like this: (15%*10%)/(1-17%). Yes taxation in Brazil is confusing. As for the 40% remaining it should also have reservation for financing as it is common in Brazil to offer 12x flat rate financing on purchases even thought we have around 10% inflation annually and high default rate. But i agree that around 20% to 15% in this 40% gap should be additional profit over Brazilian operations.