Brazil: Government launches “Q&A” ​​on the Tax Reform

On August 5th, the Brazilian Ministry of Economy launched a publication in the “Questions and Answers” ​​format, explaining the main points of the first part of the federal government’s Tax Reform proposal (Bill No. 3,887 / 2020) , delivered to the National Congress on July 21st.

 

What are the contents of the Q&A?

Among the information highlighted in the document are the premises for:

  • the creation of the Social Contribution on Transactions with Goods and Services (CBS), which will replace PIS / Cofins
  • the advantages of the new contribution over those it replaces
  • the destination and form of collection of the new tax
  • the transition process to the new model and the benefits to society and the country’s economy

With simple and didactic language and dynamic visuals, the publication helps to understand why the creation of CBS is much more than just the unification of a set of taxes. As stated by the Minister of Economy, Paulo Guedes, the initiative represents the emergence of a completely new, more rational, modern and simple tax reality, decisive to efforts to place the country on the same level as the nations that have the most efficient and fair systems in the world.

 

These regulatory changes could affect your business with view to customizing or support of your ERP/SAP system. Please contact us to learn about possible necessary reactions to the changes – we are happy to assist you!