- On January 16, 2025, Brazil’s President sanctioned Complementary Law No. 214/2025.
- The reform replaces old taxes with IBS, CBS, and IS.
- Key changes include a dual VAT system, destination-based taxation, and a minimum effective tax rate.
- The transition begins in 2026 and completes by 2033.
- Non-compliance is not an option; the new regime is mandatory.
- Prepare your team with readiness assessments and strategic plans.
- Ensure data accuracy and upgrade systems for the new tax rules.
- Invest in automation to handle increased reporting and compliance tasks.
- Upskill staff and engage local experts for legislative updates.
- Strengthen fiscal controls and prepare for audits.
- Monitor tax incentives and manage compliance risks.
Source: tax.thomsonreuters.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.
