65% of small businesses predict impacts of Tax Reform

Brazilian small businesses are preparing for significant changes with the Tax Reform. According to the Omie Small Business Survey, a recent Omie research study conducted with Omie's cloud-based ERP platform, involving 285 leaders of CNPJs (taxpayers) opting for the Simples Nacional system, 65% of those surveyed—including CEOs, directors, partners, managers, and entrepreneurs—believe the new rules will directly impact their businesses.

While 26% of respondents are unsure about the impact of the reform, only 9% believe it will have no influence on their daily lives. For economist Felipe Beraldi, Manager of Economic Indicators and Studies at Omie, the changes bring opportunities, but also challenges. Especially in understanding the alterations and the timelines for adaptation.

The research showed that 59% of entrepreneurs know that the main change will be the creation of the Value Added Tax (VAT) and the elimination of tax cumulativity," explains Beraldi. The VAT aims to unify five taxes – ICMS, ISS, IPI, PIS, and Cofins – into a single collection, contributing to greater transparency and simplification of the collection process.

Despite the expectation of simplification, Beraldi warns that the process will be complex. "Companies need to begin preparing and adapting to the changes. The sooner they understand the new rules of the Reform, the easier it will be to reassess cash flow, working capital, the tax regime, supply chain, and pricing," he says. 

The transition to the new tax system will be gradual. Implementation begins in 2026 and continues until 2033, when the Tax Reform will be fully in effect. During this period, there will be a coexistence regime between the current system and the new one, requiring attention from managers and their accountants. 

"Although the reform promises to simplify tax management in the long term and reduce distortions, in the short term, this duplication will certainly generate a significant increase in complexity, requiring significant changes to internal processes for any business, especially small businesses," says Marcelo Lombardo, co-founder and CEO of Omie.

Beyond the challenges, the reform represents a significant opportunity for accounting professionals, whose roles become even more strategic during the implementation of the new rules. Not coincidentally, the research revealed that 75% small businesses believe the accountant will be essential during this time. The research also reinforces the need for more effective communication, to ensure that the reform's updates reach business owners clearly and quickly.

With the Tax Reform in effect, small businesses, which represent 99.1% of Brazilian companies and are responsible for more than 27.1% of GDP and more than 70.1% of formal employment, will face a challenging period of adaptation. The success of this transition will largely depend on the SMEs' ability to adjust to the new rules and the strategic guidance offered by accountants.

65% of small businesses predict impacts of Tax Reform