The Tax Reform in Brazil is about to transform the country's fiscal landscape, bringing technology to the forefront. With the digitization of various government entities, tax authorities are leveraging apps, software, and Artificial Intelligence (AI) to enhance oversight and compliance with tax regulations. In this context, it is imperative that companies and professionals adopt AI-based tools to mitigate risks and ensure compliance with new regulations.
Changes in tax legislation, driven by the Reform, have generated an avalanche of rapidly evolving information, making it challenging for companies and professionals to stay updated and understand the impact of these changes on their operations. Studies indicate that technology is crucial for boosting productivity and innovation in various sectors, including the tax sector. In fact, the digitization of tax practices has demonstrated significant benefits in terms of compliance, efficiency, and revenue increase.
A recent report from the Thomson Reuters Institute provides a detailed overview of corporate tax professionals' preparedness for the Reform in Brazil. The research, titled "Brazil's Tax Reform: insights, challenges, and opportunities for corporate tax professionals," highlights that the biggest challenges faced by professionals include workload overload and the costs associated with adapting tax management systems to the new model. Although they do not completely eliminate the challenges, technology and AI are seen as essential allies to ease the transition.
The report also emphasizes that adaptation to the Reform will require tax management systems that offer greater automation, accuracy in calculations, and agility in implementing new SPEDs and electronic tax documents. Accountants and professionals in the field should invest in technology to improve efficiency and minimize human errors during this transition period.
The research also reveals that at least 50% of respondents expect a significant increase in investment in their tax departments in the first four years of the reform, with 40% predicting that this investment will continue until the end of the transition period in 2033. For a successful transition, more than just adapted digital systems will be necessary; organizations must develop integrated and strategic action plans.
In addition to implementing advanced technologies, it is crucial for companies to stay updated with new regulations, train their professionals, and promote internal and external collaboration with specialists and consultants. Following this approach, tax professionals will be better equipped to lead their organizations through the transformations caused by the Tax Reform in Brazil.
