The instrument of ‘split payment’ planned for 2027, to combat tax evasion and ensure more efficient revenue collection, is one of the pillars of the tax reform, regulated this year. This mechanism will directly impact the cash flow of companies, which requires preparation to deal with the new reality.
In simple terms, ‘split payment’ is a system where taxes are segregated at the time of payment, going directly to the public coffers without passing through the company’s account. It means the end of delays in collection and the complexity of tax forms. ‘It’s a dream for the government and a logistical nightmare for those managing cash flow,’ says tax lawyer Lucas Ribeiro, founder and CEO of ROIT, a leading company in solutions for Tax Reform.
According to Ribeiro’s assessment, ‘split payment’ places the Tax Authority ‘in the position of co-owner of the companies’ cash flow’. He compares the change represented by the new instrument to that caused by the emergence of ‘Sped’ (Public Digital Bookkeeping System). ‘It’s a change as drastic as that one. The difference is that now the impact is direct and daily.’
Impacts on cash flow
According to Ribeiro, for companies already facing challenges in balancing inflows and outflows, ‘split payment’ could raise a red flag. The automatic segregation of taxes reduces the net amount available in the company’s account. And this is not just a technical change – it’s a strategic change.
‘Imagine that before, the tax was ‘parked’ in the account for a few weeks until the payment deadline. Now, it will be deducted instantly. The result? Less working capital and greater reliance on credit,’ explains Ribeiro.
A crucial question: how to survive?
Companies already operating with tight margins need to rethink strategies now, recommends the tax lawyer. Renegotiating deadlines with suppliers, increasing operational efficiency, and cost optimization will be essential to face this new reality. In addition, the use of advanced technologies for financial and tax management will become mandatory.
“If the company does not master its operational data, ‘split payment’ can become an unsustainable burden. Invoice-To-Pay tools and cash flow simulators integrated with ‘split’ are solutions that will help companies see the future before it becomes a problem,” advises Lucas Ribeiro.
Benefits and challenges
Although the promise of ending tax evasion is attractive – and positive for the country’s economic balance -, challenges cannot be ignored. Ribeiro lists some of them:
Benefits
- Reduction of tax evasion and unfair competition.
- Simplification of tax collection.
- Greater tax predictability for governments and companies.
Challenges
- Reduction of immediate liquidity.
- Dependency on robust real-time management systems.
- Need for more working capital for companies with high tax volumes.
- Complex reconciliation between operations in competence versus cash.
If ‘split payment’ is inevitable, preparation will be the game changer. Companies that master the numbers, adjust their processes, and invest in advanced technology will come out ahead, highlights ROIT’s CEO. ‘In the management war to come, those with the data on hand will dictate the rules of the game. ‘Split payment’ is not the end, but the beginning of a new era in business management.’
Ribeiro adds: ‘So, the final question remains: will your company have the funds for ‘split payment’ or will it be hostage to loans and interest? The time to act is now. Those who wait for the storm do not prepare to sail.’
