Recent changes in the Brazilian tax scenario, expected for 2025, will significantly impact areas such as opening and maintaining international companies, trusts, investment funds, international consultancy and tax planning.
Main Changes:
- Tax Reform and New Taxes: The introduction of the Tax on Goods and Services (IBS) and the Contribution on Goods and Services (CBS) will replace taxes such as PIS, Cofins and ICMS, aiming to simplify taxation on consumption.
- Choosing the Tax Regime: Companies have until December 2024 to define the tax regime for 2025, considering options such as Real Profit, Presumed Profit and Simples Nacional, according to their size and revenue projection.
- Changes in Accessory Obligations: Changes are expected in digital tax accounting, requiring companies to adjust their accounting systems to meet the new requirements and avoid problems with inspections.
- Sector Exemptions and Exemptions: The new tax structure provides for adjustments in exemptions for specific sectors, such as transportation and food, directly affecting the financial planning of companies in these segments.
- New Deadlines and Penalties: With stricter inspection, there will be new deadlines for sending tax information and severe penalties in case of non-compliance, requiring greater attention from companies to avoid fines.
Trends for 2025:
- Automation and Artificial Intelligence: The adoption of technologies to automate tax processes will be essential to increase efficiency and reduce errors in tax management.
- Tax Credit Recovery: Companies will seek to identify unused tax credits, such as PIS, COFINS and ICMS, using automated tools to optimize their tax burden.
- Expansion of Tax BPO: Outsourcing tax processes will allow companies to focus on strategic activities while experts take care of tax compliance.
- Integration between Tax Management and the Financial Sector: Collaboration between the financial and tax departments will be essential to improve cash flow predictability and optimize tax planning.
- Focus on ESG and Green Taxation: Companies will align their tax practices with environmental, social and governance (ESG) criteria, taking advantage of tax benefits linked to sustainable initiatives.
Recommendations:
In light of these changes, it is crucial that international companies and investors review their investment allocation strategies and corporate structures.
LTC Group’s expert consultancy can assist in adapting to new regulations, ensuring compliance and tax efficiency. For more information and personalized support, please contact us.
