Brazilian Tax Reform
“IBS, CBS and the Selective Tax: impact modeling by product line across the transition to 2033.”
TaxUp Consultoria Tributária
TaxUp Consultoria Tributária is a Brazilian tax advisory firm.
Products & services
Transfer Pricing
“Full OECD standard since January 2024 (Law 14,596/2023): FAR analysis, method selection, Local File.”
Recovery of Tax Credits
“PIS, COFINS, ICMS and IPI — digital tax audit of the last five financial years.”
International Tax Planning
“Pillar 2, the 10% withholding tax on dividends, CIDE-royalties and treaty relief for inbound groups.”
Tax Planning
“Regime choice, holding structures, JCP versus dividends and succession planning.”
Tax Litigation
“Defense in assessments, CARF appeals, writ of mandamus and special appeals to the STJ and STF.”
Tax Compliance
“SPED, eSocial, EFD-Reinf, DCTFWeb and the NF-e layout of the reform (NT 2025.002).”
Customs Law
“Import taxation, drawback, ex-tariff, RADAR, AEO and defense against forfeiture penalties.”
Tax Lawyer in Brazil
“A senior lawyer running every case — planning, recovery, assessments, CARF and the courts.”
Brazilian Tax Reform 2026—2033
“Corporate adaptation to the Brazilian tax reform — IBS, CBS, the Selective Tax and the transition to the dual VAT system in 2033.”
Questions & answers
Where should a company start with the Brazilian tax reform?
“With a diagnostic of what changes in its own operation. CBS becomes fully operational in 2027 and IBS is phased in through 2033, but the new NF-e fields for IBS, CBS and the Selective Tax are already mandatory in 2026 under technical note 2025.002.”
How far back can Brazilian tax credits be recovered?
“Five years. For ICMS, the right to the credit expires five years from the issue date of the tax document (Complementary Law 87/96, art. 23, sole paragraph); for refund of overpaid tax, the period is the one in art. 168, I, of the Brazilian Tax Code.”
How fast must a company react to a federal tax assessment?
“Twenty business days. Supplementary Law 227/2026 amended Decree 70.235/1972 and replaced the former 30 calendar days, for both the administrative defense and the voluntary appeal to CARF.”
Is the first conversation billed?
“No. It is a 30-minute diagnostic with a senior consultant, free and with no commitment. The fee model is proposed afterwards, matched to the scope.”
What does a customs lawyer do?
“A customs lawyer legally structures foreign-trade operations and defends the company when customs control turns into litigation.”
Which taxes are levied on imports?
“Five taxes are levied today on the import of goods: the Import Duty (II), the IPI on imports, the PIS/Pasep on imports (2.1% for goods), the COFINS on imports (9.65% for goods, with a 0.6 percentage-point surcharge in 2026 for listed NCMs) and the ICMS on imports, calculated on a gross-up basis.”
What is the gray channel of customs clearance?
“It is the most severe of the four inspection channels of imports (RFB IN 680/2006, art. 21): besides the documentary examination and the physical inspection, the authority opens a special control procedure to investigate indications of fraud, including as to the declared value. The goods are held during the investigation.”
What is drawback and what are the modes?
“Drawback is the special customs regime that relieves the inputs used in goods to be exported.”
What is the difference between undervaluation and subfacturing?
“The divide is intent. Undervaluation is the incorrect application of the AVA-GATT methods without falsity: the consequence is the recomposition of the customs value and the collection of the tax differences, with no forfeiture.”
When does Brazilian Pillar 2 apply to my group?
“Pillar 2 OECD applies to multinational groups with consolidated annual global revenue of €750 million or more in at least 2 of the last 4 fiscal years. Below threshold: no Pillar 2 obligation.”
Can we use JCP instead of dividends to avoid the 10% WHT?
“JCP (Interest on Equity) is taxed at 15% WHT at recipient but is deductible at Brazilian company level (34% IRPJ/CSLL saving). Net effective benefit: approximately 19% compared to dividend (which has 10% WHT post-2026 but no deduction at company level).”
How does Brazilian Pillar 2 interact with home jurisdiction Pillar 2?
“Brazilian QDMTT is "Qualified" — meaning it is designed to be collected by Brazil first, taking priority over the parent jurisdiction's top-up tax. If Brazilian ETR is below 15%, Brazil collects the top-up; the parent jurisdiction does not also collect on the same Brazilian profits.”
What is the effective tax cost of remitting BRL 10M in royalties to parent abroad?
“Cumulative impact: CIDE-royalties 10% + WHT 15% + partial non-deductibility = effective tax cost of approximately 35-40% on remitted value. For BRL 10M royalty, total Brazilian tax burden is approximately BRL 3.5-4M.”
Does Brazil have a tax treaty with the US?
“No — there is no double taxation treaty in force between Brazil and the United States. Treaty has been under negotiation for decades but never finalized.”
Can foreign-controlled Brazilian subsidiaries claim Brazilian tax recovery?
“Yes — recovery eligibility depends on tax regime (Lucro Real for most paths) and operational profile, not on ownership. Brazilian subsidiaries of multinationals operating under Lucro Real are eligible for all standard recovery paths (Theme 69, Theme 779, ICMS-ST refund, accumulated export credits, etc.).”
How long does the recovery process take?
“Depends on path: administrative recovery (PER/DCOMP) for clear theses with strong precedent: 4-12 months from filing to credit availability. Administrative + judicial backup (when administrative is challenged): 18-36 months.”
How is the recovery value typically calculated?
“For PIS/COFINS Theme 69: recovery is the PIS/COFINS paid on the ICMS portion of revenue over last 5 years, corrected by SELIC interest rate. For a Lucro Real company with BRL 100M annual revenue, typical recovery is BRL 15-30M total over 5 years.”
What happens to PIS/COFINS recovery after January 2027?
“The right to recover continues (5-year statute of limitations running backwards from the act creating the right), but processing becomes "legacy litigation" — slower because there is no more active PIS/COFINS for direct offset. Refund in cash or offset against other federal taxes becomes the path, with 12-36 month timeline.”
Data formats & record details
Download this profile and inspect its supporting evidence.
- Entity ID
- urn:readyscan:entity:taxup-consultoria-tributaria-q140673420
- Material fingerprint
- fnv1a64:f52fd7be1767403a
- Entity revision
- fnv1a64:ce07af37ae5d87c7
- Published
- 2026-10-27
- Modified
- 2026-10-27
- Source summary
- TaxUp Consultoria Tributária: Brazilian tax advisory firm. Website: https://taxup.com.br.
- Evidence record
- urn:readyscan:corpus:evidence:taxup-consultoria-tributaria-q140673420