6 points of attention on the tax reform that will have an impact on the pocket

6 points of attention on the tax reform that will have an impact on the pocket


Rafael Pandolfo’s tax lawyer underlines risks and questions about the new tax model


Summary

The tax reform will begin to be implemented in 2026 with the transition by 2033, bringing new taxes, increase in operating costs, tax redistribution, cashback to low -income families and greater transparency, but generating doubts and technical challenges.




The new consumption tax collection structure in Brazil will begin to be gradually implemented from 2026, with a test period and a ten -year transition regime. The complete replacement of current taxes, such as ICM and ISS, will only take place by 2033. Until then, the country will live with two collection models, the old and the new, which will increase complexity and operational costs for companies and consumers.

Despite the promising simplification and greater tax justice, the approved tax reform still raises doubts among experts. “The proposal brings relevant innovations, but also brings a series of technical issues that must be better understood and discussed, in particular as regards the transition and practical application of the new model”, says the lawyer Andressa Sehn Da Costa, a specialist in tax law and partner of Rafael Pandolfo Advagados Associatedos.

So see 6 points of renewal to keep an eye on:

VAT double and new taxes

The new system provides for the replacement of current taxes (Pis, Cofins, ICMS and ISS) with two new ones: the contribution on goods and services (CBS), Federal and the tax on goods and services (IBS), State and Municipal. The proposal tries to unify the rules, but the coexistence of management (federal and management committee) can maintain a certain operational complexity.

Management committee and federative challenges

The IBS administration will be carried out by a national management committee, consisting of representatives of the States and Municipalities. This centralization asks questions about the autonomy of the entities in the collection and application of resources, as well as possible conflicts in the governance of the new system.

Period -long -transitional

The application of the new model begins in 2026, but the transition will be performed staggered, being decidedly implemented in 2033. During this period, the two systems, the current and the new, coexist. This overlap can generate costs of costs and will require continuous adjustments from companies.

Possible redistribution of the tax burden

The standard rate of the new model is not yet defined, but estimates indicate that intensive sectors in services such as education, health and digital economy will have to face an increase in the load. Segments already with long chains and greater industrial production can have tax relief. This can cause short and medium term distortions.

Implementation of cashback

The partial performance of taxes for low -income families is planned, with the aim of making the system more progressive. However, the definitions are still missing on how this performance will be made operational, what criteria will be used and what the tax impact will be.

Transparency in the final price for the consumer

The new model provides that the value of taxes on goods and services is clearly displayed to the consumer. This can represent a turning point in tax transparency, but will depend on the regulation and clarity in the form of presentation of these data.

For Andressa Sehn Da Costa, the moment requires further attention. “Although the proposal brings relevant structural changes, different points still depend on regulation and technical details. The transition phase represents a period of uncertainty, in which companies and consumers will have to adapt to the new rules while facing the current system,” he says.

With the renewal already approved, the subsequent passages provide for the regulation and gradual implementation of the changes. The process should extend for the next few years and request the attention of companies, sector entities and professionals in the area, given the possible practical and operational impacts of the new tax model.

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Source: Terra

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