Tax overhaul still faces regulatory gaps before rollout
With seven months remaining before Brazil’s existing federal consumption taxes are replaced by a new value-added tax system, at least 22 issues still require joint regulation by the federal tax authority and the governing committee responsible for the new state-and-municipal VAT, according to a survey by law firm Martinelli Advogados. Among the most important unresolved […]
Most companies expect higher taxes under reform
[…] Eduardo Lucas, partner at Martinelli Advogados, highlighted the impact on corporate cash flow. “If I previously could schedule tax-related cash payments six months ahead, now the impact on cash flow will be immediate,” he said. Under the current system, he added, companies effectively operate on a deferred payment basis, knowing on which days of […]
Consumption Tax Reform pilot program: Contribution on Goods and Services systems now in use at 500 Brazilian companies
Brazil’s tax reform took a concrete step toward implementation. As of 1 July 2025, the Consumption Tax Reform pilot program is in effect under RFB Administrative Ordinance 549, dated 13 June 2025. This initial phase is designed to validate systems and processes for the new Contribution on Goods and Services (CBS) and gives companies an […]
New tax framework to impact operational, contractual, and accounting flows
Brazil’s new tax framework, established by Supplementary Law No. 214/2025, represents a comprehensive overhaul of the country’s tax system. The reform introduces structural changes that significantly affect consumption taxes—including PIS, Cofins, ICMS, ISS, and IPI—and ongoing discussions on corporate income taxation (IRPJ and CSLL). Although full implementation is scheduled for 2033, the transition has already […]
How Tax Reform is reshaping private contracts
While tax reform is often viewed solely through a fiscal lens, its effects extend into other areas of law. Supplementary Law No. 214/2025 significantly restructures the revenue system, altering the economic foundations of many contracts drafted under the previous tax model. This shift has direct implications for Contract Law. Although it is not yet time […]