Do you know what split payment is and when it will apply to your company?

The "split payment" instrument, planned for 2027, to combat tax evasion and ensure more efficient collections, is one of the pillars of the tax reform, regulated this year. This mechanism will directly impact companies' cash flow, requiring immediate preparation to deal with the new reality.

Simply put, “split payment” is a system in which taxes are segregated at the time of payment, going directly to the public coffers without going through the company's account. It means an end to delays in collection and the complexity of tax guides"It's a dream for the government and a logistical nightmare for those managing cash flow," says tax specialist Lucas Ribeiro, founder and CEO of ROIT, a leading company in tax reform solutions.

In Ribeiro's view, "split payment" places the tax authorities "in the position of co-owner of companies' cash flow." He compares the change represented by the new instrument to that brought about by the emergence of "Sped" (Public Digital Bookkeeping System). "It's as drastic a change as that. The difference is that now the impact is direct and daily."

The impacts on cash flow

According to Ribeiro, for companies already facing challenges balancing income and expenses, split payments can be a red flag. Automatic tax segregation reduces the net amount available in the company's account. And this isn't just a technical change—it's a strategic one.

"Imagine that, before, the tax would be 'parked' in the cash register for a few weeks until the due date. 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 that already operate with tight margins need to rethink their strategies now, recommends the tax expert. Renegotiation of deadlines with suppliers, increased operational efficiency and cost optimization will be indispensable to face this new reality. Furthermore, the use of advanced technologies for financial and tax management will become mandatory.

“If a company doesn't master its operational data, split payments can become an unsustainable burden. Invoice-to-pay tools and cash flow simulators integrated with split payments are solutions that will help companies see the future before it becomes a problem," advises Lucas Ribeiro.

Benefits and challenges

While the promise of ending tax evasion is attractive—and positive for the country's economic stability—the 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.
• Dependence on robust systems for real-time management.
• Need for greater working capital for companies with a high volume of taxes.
• Complex reconciliation between operations on accrual versus cash.

If split payments are inevitable, preparation will be the game-changer. Companies that master the numbers, adjust their processes, and invest in advanced technology will come out ahead, emphasizes ROIT's CEO. "In the upcoming management war, whoever holds the data will dictate the rules of the game. Split payments 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 cash for the split payment, or will it be held hostage by loans and interest? The time to act is now. Those who wait for the storm are not prepared to sail."