- Brazil’s Chamber of Deputies approved a law to regulate the country’s indirect tax reform with amendments from the Senate on 17 December 2024
- The reform follows Constitutional Amendment No 132 passed on 20 December 2023, introducing major changes to indirect taxes
- The reform includes the replacement of three federal taxes, one state value added tax, and one municipal tax with two new taxes and a new federal selective tax
- New legislation introduces a 60% tax rate reduction for certain sectors under the new taxes
- The law covers aspects like taxable events, payments, credits, refunds, collection methods, and transition rules
- Congressman Reginaldo Lopes noted the reform reduces the tax burden for Brazilians by 0.7%
- The Chamber approved most of the Senate’s changes but reinstated the Selective Tax on sugary drinks and increased the general reference rate to 28%
- The new taxes will be trialed in 2026 and fully implemented in 2027
Source: regfollower.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
