Brazilian Tax Reform | PEC 45 – Preliminary Draft Bill

The Tax Reform Bill (PEC 45/2019), approved in June of this year by the Chamber of Deputies and soon to be evaluated by the federal Senate, has introduced several points with the aim of streamlining and simplifying Brazil’s tax code.

As the legislative sessions resume, it is expected to be extensive discussion regarding key aspects of the proposal, such as the possibility of tax collection by the states and the actual rate of the new VAT.

There are still several fundamental aspects to be addressed in the second semester, and when the final text is approved, taxpayers will face challenges during the transition period, including fiscal compliance issues, changes in systems, and a potential increase in legal matters related to taxation.

To facilitate tracking of these discussions and clarify important points about PEC 45, our tax team has prepared material in both English and Portuguese, providing context for the most important points, including tax unification, rates, immunities, tax regimes, funds, refunds, and the federal Council.