<\/p>\n
On January 16, 2025<\/strong>, Complementary Law 214\/25<\/strong> was enacted and published with partial vetoes, regulating Brazil\u2019s tax reform<\/strong>, which originated from PLP 68\/24<\/strong>.<\/p>\n As our firm has been advising clients, this law represents a significant overhaul of the national tax system<\/strong>, bringing relevant impacts to businesses and individuals, particularly in the area of consumption taxation<\/strong>. Among the main changes are modifications to the Goods and Services Tax (IBS)<\/strong> and the Social Contribution on Goods and Services (CBS)<\/strong>, with a consolidated tax rate that could reach up to 28%<\/strong>.<\/p>\n The reform simplifies consumption taxation<\/strong> by replacing the current five taxes<\/strong> with a dual Value-Added Tax (VAT) model<\/strong>, composed of:<\/p>\n \u2714\ufe0f CBS<\/strong>: Covers PIS, Cofins, and IPI<\/strong>, under federal jurisdiction; These changes eliminate tax cascading and accumulation<\/strong>, creating a simpler system<\/strong> but with potential cost increases<\/strong> for businesses, particularly in sectors with low margins or extensive production chains<\/strong>.<\/p>\n The reform will be implemented gradually<\/strong>:<\/p>\n 2026<\/strong>: Test phase with reduced rates for CBS and IBS; \u2714\ufe0f Zero-rated basic food basket<\/strong>: Includes essential items such as rice, beans, milk, meat, and French bread<\/strong>; The reform requires a strategic review<\/strong> of tax planning<\/strong>. Some key adaptations<\/strong> include:<\/p>\n \u2714\ufe0f Reviewing contracts and corporate reorganizations<\/strong> to mitigate the impact of higher tax costs; The Complementary Law was enacted with partial vetoes<\/strong>, including:<\/p>\n \u2714\ufe0f Selective Tax on mineral exports<\/strong>: Maintained, raising concerns among export sectors; These vetoes will be analyzed by Congress<\/strong>, which may uphold or overturn them<\/strong>.<\/p>\n \u2714\ufe0f Healthcare and education<\/strong>: 60% tax reduction<\/strong> for medical services, accessibility devices, and basic education<\/strong>; We are available to clarify any questions and discuss the specific impacts of tax reform on your business.<\/strong><\/p>\n <\/p>","protected":false},"excerpt":{"rendered":" On January 16, 2025, Complementary Law 214\/25 was enacted and published with partial vetoes, regulating Brazil\u2019s tax reform, which originated from PLP 68\/24. As our […]<\/p>\n","protected":false},"author":2,"featured_media":433,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[16,1],"tags":[],"class_list":["post-544","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-informativo","category-noticias"],"acf":[],"yoast_head":"\n
\nReorganization of the Tax System<\/strong><\/h3>\n
\u2714\ufe0f IBS<\/strong>: Incorporates ICMS (state tax) and ISS (municipal tax)<\/strong>.<\/p>\n
\nGradual Implementation and Transition<\/strong><\/h3>\n
2027 to 2033<\/strong>: Transition to new tax rates<\/strong>, while the old taxes are gradually phased out<\/strong>.<\/p>\n
\nMain Points of the New Regulation<\/strong><\/h3>\n
\u2714\ufe0f 60% reduction in the standard rate<\/strong>: Applies to items like pasta, vegetable oils, and natural juices<\/strong>;
\u2714\ufe0f Selective Tax<\/strong>: Applies to products such as alcoholic beverages, cigarettes, vehicles, and boats<\/strong>, aiming to discourage the consumption of products harmful to health or the environment<\/strong>;
\u2714\ufe0f Cashback for low-income individuals<\/strong>: 100% refund<\/strong> of CBS and at least 20% refund<\/strong> of IBS on essential items<\/strong>, such as electricity and cooking gas<\/strong>.<\/p>\n
\nImpact on Businesses<\/strong><\/h3>\n
\u2714\ufe0f Analyzing supply chains and logistics<\/strong> to identify opportunities for savings and efficiency gains;
\u2714\ufe0f Monitoring complementary regulations<\/strong>, which are essential for compliance with the new regulatory environment;
\u2714\ufe0f Reassessing tax planning strategies<\/strong> that previously considered state and municipal tax incentives<\/strong>.<\/p>\n
\nPresidential Vetoes<\/strong><\/h3>\n
\u2714\ufe0f Exclusion of tax substitution regimes for IBS and CBS<\/strong>, reducing complexity in fulfilling tax obligations;
\u2714\ufe0f Entities remaining as IBS and CBS taxpayers<\/strong>:
Investment Funds<\/strong>;
Endowment funds established under Law No. 13.800\/2019<\/strong>;
Real Estate Investment Funds (FII)<\/strong> and Investment Funds in Agribusiness Production Chains (Fiagro)<\/strong>.<\/p>\n
\nBenefited Sectors and New Tax Rates<\/strong><\/h3>\n
\u2714\ufe0f Real estate<\/strong>: Exemption for individuals<\/strong> with rental income below R$ 240,000 per year<\/strong>;
\u2714\ufe0f Liberal professionals<\/strong>: 18 categories<\/strong>, including lawyers and engineers<\/strong>, will benefit from a 30% tax reduction<\/strong>.<\/p>\n