The Brazilian Federal Government will reduce tax incentives for several federal taxes starting in 2026. Corporate Income Tax and Import Tax incentives will be cut from 1 January 2026, while other taxes such as PIS/Pasep, Cofins, CSLL, IPI, and employer social security contributions will see reductions from 1 April 2026. The changes affect a broad range of tax regimes and are subject to complementary legislation.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
Deptax · about 20 hours ago
The May 2026 Tax & Reg Watchpoint highlights a wave of VAT reforms across Brazil, Africa, Europe, and Asia, including Brazil’s dual VAT model, new digital services taxes in Rwanda, Malawi, Botswana, and Togo, EU data‑sharing for fraud, and other cross‑border compliance changes.
KPMG · about 1 month ago
Brazil has introduced a dual VAT model replacing PIS, COFINS, ICMS, and ISS with CBS and IBS. Nonresident sellers must register for CBS/IBS, issue electronic invoices, and comply with split payment rules from August 2026, with CBS fully operational at 8.8% from 2027 and full implementation by 2033.
EY · about 1 month ago
Brazil has published the regulations for its new Tax on Goods and Services (IBS) and Contribution on Goods and Services (CBS), marking the operational start of the indirect tax reform. The regulations provide operational rules and a shared framework, requiring integrated compliance. Penalties may apply from August 2026, giving taxpayers a compressed adjustment period.
VatCalc · about 1 month ago
Brazil introduced a new federal CBS tax on digital services effective 1 January 2026, replacing PIS and Cofins. The consolidated rate of 26.5% (CBS 8.8% + IBS 17.7%) applies to non‑resident providers and marketplaces, which must register and comply with Nota Fiscal e‑invoicing. B2B customers can self‑account, while B2C transactions are subject to collection by the provider.
Global VAT Compliance · about 1 month ago
Brazil has enacted Decree No. 12,955, establishing a federal Contribution on Goods and Services (CBS) for digital services. The decree imposes destination‑based taxation on non‑resident suppliers, requiring registration and tax collection on B2C sales, while B2B transactions are subject to reverse charge. Platforms that facilitate services become deemed suppliers, responsible for collecting and remitting CBS.
International Tax Review · 2 months ago
The article explains how Brazil’s new nationwide consumption tax, the IBS, replaces state and municipal taxes, marking a significant shift in governance and operational logic. It highlights the implications for municipalities and the broader tax system, underscoring the paradigm shift in Brazil’s indirect tax regime.
Put your brand alongside trusted tax-tech intelligence across 150+ countries.
Key Takeaways
The reduction takes effect on 1 January 2026 for Corporate Income Tax (IRPJ) and Import Tax (II).
The reduction applies to those taxes from 1 April 2026.
The legislation references the Presumed Profit regime, Special Regime for the Chemical Industry, Presumed IPI tax credits, and Presumed PIS/Pasep and Cofins tax credits.
It applies to tax incentives and benefits listed in the Tax Expenditure Statement annexed to the 2026 Annual Budget Law, except where exclusions are expressly provided by complementary law.
Primary source
Read the full article at SovosThis summary was published on VATfaqs.com on 14 January 2026. It relates to VAT developments in Brazil. The original source is Sovos.
