The federal government decided to withdraw the urgency regime from Complementary Bill 68/2024, which deals with the regulation of the tax reform, after the voting deadline expired. The project, which arrived at the Senate on August 7th, should have been voted on by September 22nd. Since the deadline was exceeded, the project began to block the Senate agenda starting September 23, preventing the voting of other proposals, except those with established constitutional deadlines, until the reform PLP is analyzed.
Main points of tax reform
The reform proposes the creation of theGoods and Services Tax (GST), which will replace the ICMS and ISS, unifying the taxation on goods and services into a single tax, with the aim of simplifying the tax system. The IBS will have a calculation basis that covers both the circulation of goods and the provision of services, and will be levied in a non-cumulative manner, applying only to the added value at each stage of the production process. The proposal also provides for variable rates, according to the category of goods and services, in order to promote greater fiscal justice, preventing states and municipalities from charging divergent rates.
In addition to the IBS, the reform suggests the creation of theTax on Goods and Services (CBS)a federal tax that will replace PIS, Cofins, and IPI. Like the IBS, the CBS will also be levied in a non-cumulative manner, applied to the companies' revenue, with taxation only on the added value.
Another highlight of the reform is the so-calledSelective Tax, or “Sin Tax”, which will be levied on goods and services considered harmful to health or the environment.
The project has already received more than 1,200 amendments in the Senate and is under review by the Constitution and Justice Committee (CCJ). Meanwhile, public hearings have been held to discuss the text. One of these hearings, held on Wednesday, September 25th, was promoted by the Committee on Economic Affairs (CAE) and aimed to discuss the impacts of the tax reform on differentiated and specific regimes. The debates are part of a cycle requested by the committee chairman, Senator Vanderlan Cardoso (PSD-GO), to assist the working group led by Senator Izalci Lucas (PL-DF) in the evaluation of the regulation.
What changes for companies
While the project is still being processed in the Senate, businesspeople, especially those who opt for the Simples Nacional, are questioning how the changes could impact their activities.
According to Rafael Caribé, CEO ofStreamline Online Accounting,The Simples Nacional is already a simplified regime that consolidates several taxes into a single payment. He observes that some companies can benefit from the rules of non-cumulativity and the segregation of taxes.
“Taxpayers who opt for the Simples regime can take advantage of the non-cumulative nature of the system. Currently, it is possible to offset ICMS, PIS and Cofins credits (except ISS) from previous stages. With the reform, there will be a hybrid regime that will allow ISS to be offset through the IBS. Although this may increase the tax burden, it will allow the full use of credits and their transfer to customers, which will be especially advantageous for B2B (business to business) companies with long production chains. For companies that operate in the B2C (business to consumer) regime, there will be no change, since the credits cannot be transferred to the end consumer,” explains Caribé.
He emphasizes that, during the transition period, the accountant will be a key partner for the companies. "It will be a long transition, but necessary to simplify the Brazilian tax environment and ensure greater competitiveness," he states.
The government expects the text to be approved by the Senate this year, although it is already considering the possibility that the vote will be postponed until early 2025.
