- Brazil’s Senate approved legislation for new value-added taxes, IBS and CBS, under PLP 68/2024
- Fuel industry taxes will be collected by producers and importers, with uniform rates across Brazil, adjusted annually from 2027 for CBS and 2029 for IBS
- Tax rates for biofuels and low-carbon hydrogen will be 40 to 90 percent of the rates for fossil fuels
- Financial services industry will have special rules, maintaining a stable tax burden with uniform rates from 2027 to 2033, adjustments starting 2034
- Taxes on financial services will apply to net profits from taxable transactions, with specific deductible expenditures allowed
- Credit unions and closed supplementary pension entities are exempt from these taxes
- Services related to FGTS and other public policy guarantee funds by financial agents are taxable, except for services by Caixa Economica Federal
- Investment funds generally not subject to these taxes, except for FIDC dealing with certain securities and Real Estate or Agribusiness Funds under specific conditions
- Concessionary tax rates will apply to health and pet insurance plans
- Special tax rules will apply to the betting industry, including remote gambling, with taxable payouts after deductions
Source: answerconnect.cch.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.
