Tax reform may impact prices and business models
Water bills and car rentals, transactions that today are beyond the scope of the State Tax on Goods and Services (ICMS), the heaviest consumption tax within the current tax system, will be affected by the new Value Added Tax (IVA) introduced by the tax reform.
Tax Reform Bill approved by the House of Representatives and submitted for presidential sanction
On Tuesday, December 17, 2024, the House of Representatives passed Supplementary Law Bill No. 68/2024 (PLP), which regulates the consumption tax reform introduced by Constitutional Amendment No. 132/2023.
Tax Reform Bill approved by the Federal Senate
On Thursday, December 12, 2024, the Federal Senate approved Supplementary Law Bill (PLP) No. 68/2024, regulating the consumption tax reform introduced by Constitutional Amendment No. 132/2023.
Tax reform: not an ideal system, but much better, says expert
The House of Representatives approved the tax reform regulation bill on Tuesday (17) and the text goes to presidential sanction.
Tax substitution of Tax on Goods and Services (IBS) and Contribution on Goods and Services (CBS) and the Constitution
The approval of supplementary law bill (PLP) 68/2024 by the Senate on December 12 marked another key step toward simplifying Brazil’s indirect tax system. Although the transition from 2026 to 2032 adds complexity in the short and medium term due to the coexistence of two tax regimes, expectations are for a simpler system once the transition ends on January 1, 2033.
Federal Supreme Court (STF) forms a majority to rule out Inheritance Tax (ITCMD) on Free Benefit Generating Plan (PGBL) and Free Benefit Generating Life Insurance Plan (VGBL) pension plans
The Federal Supreme Court (STF) formed a majority to rule out Inheritance Tax (ITCMD) over the amounts of private pension plans called Free Benefit Generating Plan (PGBL) and Free Benefit Generating Life Insurance Plan (VGBL) in the event of death of the holder, when discussing Precedent-Setting Issue 1,214, with general repercussion (Appeal to the STF No. 1363013).
Benefits in the tax reform are already pushing the rate above 29%
The tax reform regulation bill approved in the Senate preserves the pillars of the new system, but the price for its approval was high. According to World Bank calculations requested for this article, the standard rate is expected to be at least 29.23%.
The Federal Supreme Court (STF) recognizes the General Repercussion on the scope of Property Transfer Tax (ITBI) immunity in capital contributions involving real estate
Last Wednesday, the Federal Supreme Court (STF) recognized the General Repercussion of the debate on the application of Property Transfer Tax (ITBI) immunity in property transfers for capital contribution, as provided in Article 156, paragraph 2, item I, of the Constitution. The issue to be decided is whether this immunity also applies when the company’s main activity involves real estate (purchase, sale, or lease of property).
