- Brazil’s Complementary Law No. 224/2025 reduces federal tax benefits and changes PIS/COFINS treatment from April 1, 2026.
- Transactions previously taxed at zero rate now incur a reduced tax (10% of the standard rate), requiring small but mandatory PIS and COFINS charges on electronic invoices.
- Businesses must use CST code 06, apply the adjusted tax rates, and reference the new law in invoice tax information.
- Companies can still claim tax credits for these transactions.
- The update introduces practical challenges, requiring system adjustments and ongoing monitoring of tax authority guidance.
Source: fiscal-requirements.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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