Brazil Congress Approves Tax Reform: Key Changes and Next Steps

• The Tax Reform bill in Brazil has been approved by the Congress.
• The final version of the bill was published on December 21, 2023.
• Several matters were excluded from the final version, including the creation of the CIDE and changes to the Sin Tax.
• The need for approval by the president of the Federal Senate has been eliminated.
• The distribution of IBS and benefits for importing petroleum derivatives into the ZFM have been suppressed.
• Differentiated regimes have been reduced to 18 sectors and 6 sectors, respectively.
• Economic studies and opinions for tax changes are no longer required to be published.
• The next step is the discussion of Supplementary Laws with the practical details of the new system.
• The Executive Power must also send bills of Law related to income tax and payroll taxation reforms within 90 days.

Source: globalcompliancenews.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.

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