Tax Reform: Tax systems are essential to ensure compliance and prevent losses.

The Tax Reform in Brazil, enacted in 2024, introduced several changes to the fiscal system, directly impacting businesses. Now, they will need to adjust contracts, systems, tax calculations, recurring operations, and logistical processes to ensure compliance with the new rules. One of the main changes is the creation of the Goods and Services Tax (IBS), which will replace taxes such as PIS, Cofins, ICMS, ISS, and IPI. This unification aims to reduce the complexity of the tax system and simplify compliance with tax obligations. (Note: "IBS" was kept as an acronym since it stands for "Imposto sobre Bens e Serviços" in Portuguese, and its English equivalent is "Goods and Services Tax (IBS)." The other tax acronyms (PIS, Cofins, ICMS, ISS, IPI) were also retained as they are specific Brazilian taxes without direct English equivalents.)

With the transformation, adapting to the new tax regime has become one of the biggest concerns for companies. According to a survey conducted by Deloitte, 60% of the companies that adopted technological solutions for tax management were able to reduce the time dedicated to fulfilling their tax obligations by up to 30%. Digitization and automation, for example, are key tools to ensure they quickly adjust to the reform while also reducing risks and operational costs.

"Complementary solutions to ERPs, such as specialized tax compliance systems, will be essential in this process, helping companies automate tax calculations, ensure automatic updates of tax rates, and reduce errors in ancillary obligations," says Marcos Tadeu Junior, CEO of Invent Software.

Moreover, the use of artificial intelligence and machine learning In tax solutions, it can further optimize tax analysis, making the process more efficient and accurate, while minimizing the risks of errors and penalties. These technologies are essential for automating repetitive tasks and ensuring that the company can adapt to constant changes in tax legislation.

With a gradual transition between 2026 and 2033, the Tax Reform aims to correct distortions in the current system and increase Brazil's competitiveness, which, according to the World Bank, ranks 184th in the ease of paying taxes ranking.

Marcos emphasizes that the process of acquiring the systems and The translation of "add-ons" from Portuguese to English is: **"add-ons"** The term remains the same in both languages, as it is commonly used in English to refer to supplementary features or extensions, especially in software, browsers, or gaming contexts. If you were referring to a different Portuguese word or phrase, please provide more context for a precise translation. necessary to adapt companies to the new legislation may take months, depending on the complexity of the solutions. Therefore, he recommends that companies start preparing as soon as possible, given that the Tax Reform will take effect in 2026. "Investing in complementary technological solutions now is essential to ensure compliance and operational efficiency in the long term," he concludes.