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.

Download English, Portuguese.

Visit us at Tauil & Chequer

Founded in 2001, Tauil & Chequer Advogados is a full service law firm with approximately 90 lawyers and offices in Rio de Janeiro, São Paulo and Vitória. T&C represents local and international businesses on their domestic and cross-border activities and offers clients the full range of legal services including: corporate and M&A; debt and equity capital markets; banking and finance; employment and benefits; environmental; intellectual property; litigation and dispute resolution; restructuring, bankruptcy and insolvency; tax; and real estate. The firm has a particularly strong and longstanding presence in the energy, oil and gas and infrastructure industries as well as with pension and investment funds. In December 2009, T&C entered into an agreement to operate in association with Mayer Brown LLP and become "Tauil & Chequer Advogados in association with Mayer Brown LLP."

© Copyright 2020. Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein.