- The Brazilian National Congress has approved a historic tax reform that simplifies the tax system and reduces compliance costs for businesses.
- The reform includes a new tax on certain goods and services.
- The reform requires implementing legislation and regulation, with the administration having 180 days to introduce the legislation to Congress.
- The reform also includes provisions related to taxes on property and financial operations.
- The need for a constitutional amendment is necessary for any substantial change to the tax system in Brazil.
- The consumption tax system in Brazil has become complex and inefficient, ranking Brazil as one of the most inefficient tax jurisdictions among large economies.
- The reform aims to address issues impacting business competitiveness and reduce tax disputes.
- The core of the tax reform is the merger of five federal, state, and municipal indirect taxes into a “dual” value-added tax (VAT) at both the national and subnational levels.
Source: cov.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.
