Brazil’s Tax Reform: Aligning with Global Standards and Enhancing Shareholder Governance and Transparency

• Brazil is implementing a major tax reform to align with OECD and G-20 standards.
• Constitutional Amendment 132/2023 introduces a dual VAT system to replace five existing taxes.
• Provisional Measure 1 262/2024 enacts OECD Pillar Two rules for a 15 percent effective tax rate on large multinationals.
• New corporate governance bills aim to strengthen minority shareholder rights and increase disclosure requirements.
• The reform is expected to improve transparency and boost confidence in capital markets.
• Despite potential implementation challenges, the reform could reduce the “Brazil cost” in international investments.

Source: papers.ssrn.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.